How To Start Business of PP-HDPE Woven Bag, Circular Loom, Plastic Bag

How to Start Business of PP-
HDPE Woven Bag, Circular

Loom, Plastic Bag.
Profitable Business Ideas
www.entrepreneurindia.co
Introduction
Woven fabric is a textile formed
by weaving. It is produced on
a loom, and made of many threads
woven on a warp and a weft.
Woven polypropylene/HDPE bags
or simply woven PP/HDPE bags are
considered to be the toughest
packaging bags, widely used to
pack materials for grain, milling and
sugar industry.
HDPE/PP oriented strips are becoming
increasingly popular in India & have caught the
eye of many end users for their requirement of
packing materials. They have become popular
on account of their inertness towards chemical,
moisture & excellent resistance towards rotting
& fungus attack. They are non toxic. Lighter in
weight & have more advantages than
conventional bags.
PP/HDPE woven sacks laminated with
LDPE/PP liner have wider applications. HDPE
woven sacks are much stronger & can withstand
much higher impact loads because of HDPE strips
elongation at break is about 15-25% as compared
to 30% of Jute. These sacks are much cleaner &
resist fungal attack. Jute prices are very unstable
in the market since Jute is an agriculture product.
These sacks have many advantages over other
conventional sacks materials & are quite
competitive in price.
HDPE/PP Woven bags ideally suitable for

Building Materials, Cement, fertilizers, Urea,
Potash, plastic, polymers, plastic pellets, etc. Food
grains: Rice, Wheat, Pulses, Tea, Coffee, Beans,
Peanuts, Sand, Sugar.
Chemicals: Pigments, Dyestuffts, oxides,
barytes, alumina, hydrates, ores, gypsum, feldspar,
mica, Lime, limestone,
Woven Packaging Fabrics, Woven bags and fabrics

are often used as an industrial packaging material.
The packaging bags and fabrics are available
mostly in HDPE (High Density Polythene) and PP
(Polypropylene).
Depending on end use these are either
laminated, or supplied without lamination. These
materials are valuable for applications in many
different industries. Any entrepreneur venture into
this field will be successful.
Few Indian Major Players are as under
Abdos Polymers Ltd.

Ashok Polymers Ltd.
Dalmia Laminators Ltd.
Emmbi Industries Ltd.
Ganpati Plastfab Ltd.
Gujarat Raffia Inds. Ltd.
Indra Industries Ltd.
Jajodia Industries Ltd.
Karnavati Alfa Intl. Ltd.
Karur K C P Packkagings Ltd.
Magnum Polymers (India) Ltd.
Polyspin Exports Ltd.
Primo Pick N Pack Pvt. Ltd.
Salguti Industries Ltd.
Shankar Packagings Ltd.
Shiv International Ltd.
Smitabh Intercon Ltd.
Stanpacks (India) Ltd.
Timespac India Pvt. Ltd.
Project at a Glance
PROJECT AT A GLANCE (` in lacs)
COST OF PROJECT MEANS OF FINANCE

Particulars Existing Proposed Total Particulars Existing Proposed Total
Land & Site Development Exp. 0.00 85.00 85.00 Capital 0.00 307.86 307.86
Buildings 0.00 186.25 186.25 Share Premium 0.00 0.00 0.00
Plant & Machineries 0.00 396.57 396.57 Other Type Share Capital 0.00 0.00 0.00
Motor Vehicles 0.00 12.00 12.00 Reserves & Surplus 0.00 0.00 0.00
Office Automation Equipments 0.00 99.00 99.00 Cash Subsidy 0.00 0.00 0.00
Technical Knowhow Fees & Exp. 0.00 25.00 25.00 Internal Cash Accruals 0.00 0.00 0.00
Long/Medium Term
Franchise & Other Deposits 0.00 0.00 0.00 Borrowings 0.00 923.58 923.58
Preliminary& Pre-operative Exp 0.00 5.00 5.00 Debentures / Bonds 0.00 0.00 0.00
Provision for Contingencies 0.00 40.00 40.00 Unsecured Loans/Deposits 0.00 0.00 0.00
Margin Money - Working Capital 0.00 382.62 382.62
TOTAL 0.00 1231.44 1231.44 TOTAL 0.00 1231.44 1231.44
Project at a Glance
Year Annualised Book Debt Dividend Retained Payout Probable P/E Yield Price/
Value Earnings Market Ratio Book Value
Price
No.of
Times
Per
EPS CEPS Per Share Share Per Share
` ` ` ` ` % ` % ` %
1-2 5.76 8.93 15.76 24.00 0.00 100.00 5.76 0.00 5.76 1.00 0.00
2-3 8.69 11.45 24.45 18.00 0.00 100.00 8.69 0.00 8.69 1.00 0.00
3-4 11.62 14.02 36.07 12.00 0.00 100.00 11.62 0.00 11.62 1.00 0.00
4-5 14.46 16.55 50.53 6.00 0.00 100.00 14.46 0.00 14.46 1.00 0.00
5-6 17.20 19.02 67.73 0.00 0.00 100.00 17.20 0.00 17.20 1.00 0.00
Project at a Glance
Year D. S. C. R. Debt / Equity Total Return Profitability Ratio Assets Curren
- as- Net on Net Turnove t Ratio
Depos Equity Worth Worth r Ratio
its
Debt
Individual Cumulative Over GPM PBT PAT Net P/V

all Contrib Ratio
ution
(Number of
(Number of times) times) % % % % % %
Initial 3.00 3.00
1-2 1.31 1.31 1.52 1.52 4.04 9.60% 4.39% 3.05% 2010.19 34.63% 2.40 1.21
2-3 1.63 1.47 0.74 0.74 2.61 10.61% 6.02% 3.95% 1608.53 23.75% 2.51 1.29
3-4 2.02 1.63 2.01 0.33 0.33 1.78 11.31% 7.20% 4.62% 1820.78 23.52% 2.52 1.39
4-5 2.47 1.82 0.12 0.12 1.28 11.78% 8.05% 5.11% 2033.03 23.35% 2.46 1.51
5-6 3.02 2.01 0.00 0.00 0.96 12.10% 8.65% 5.47% 2245.28 23.21% 2.37 1.80
Project at a Glance
BEP
BEP - Maximum Utilisation Year 5
Cash BEP (% of Installed Capacity) 54.76%
Total BEP (% of Installed Capacity) 57.26%
IRR, PAYBACK and FACR
Internal Rate of Return .. ( In %age ) 29.76%
Payback Period of the Project is ( In Years ) 2 Years 3 Months
Fixed Assets Coverage Ratio ( No. of times ) 19.895
Table of Contents
of the
Project Report
1. District Profile & Geotechnical Site
Characterization
1.1. General
1.2. Physical Characteristics
1.3. Map
1.4. Culture & Languages
1.5. Climate & Rainfall
1.6. Transportation and Communications
1.7. Economy & Industry
2. Introduction
2.1. Advantages
2.2. Polypropylene Bags
2.3. HDPE Bags
3. Properties
3.1. Polypropylene
3.2. Physical Properties of Polypropylene
3.3. Chemical Resistance of Polypropylene
3.4. Salient Features of PP Woven Sacks:
3.5. High Density Polyethylene
3.6. Salient Features of HDPE Woven Sacks:
4. Uses & Applications

4.1. Applications of HDPE Woven Sacks:
5. Importance of Packaging
5.1. Plastics-Most preferred Packaging
Material:
5.2. Bulk Commodities Packaging:
5.3. PP/HDPE Woven sacks role in Bulk
Packaging:
6. B.I.S. Specifications
6.1. 1. IS: 16187 – 2014 Textiles – High
density polyethylene (HDPE//polypropylene
(PP) leno woven sacks for packaging and
storage of fruits and vegetables.
6.2. 2. IS: 11653 – 1986 – For polypropylene
(PP) woven sacks for packing cement
(withdrawn) superseded by IS 11652.
7. Different Types of Plastics and Their

Classifications
8. Various Type of HDPE/PP Bags

8.1. The various type of PP bags commonly
in practice.
8.2. Courier Bags
8.3. Mail Bag
8.4. PP Woven Bags/ Fabric
8.5. Silt Fence/Box Bags
8.6. Pp Big Bags
9. Market Survey
9.1. Demand from Cement Industry
9.2. Polymers
9.3. Market Structure
10. Financials & Comparison of Major

Indian Players/Companies
10.1. About Financial Statements of CMIE
Database
10.2. Profits & Appropriations
10.3. Total Liabilities
10.4. Total Assets
10.5. Net Cash Flow from Operating
Activities
10.6. Section – I
10.6.1. Name of Company with Contact Details
10.6.2. Name of Director(S)
10.6.3. Plant Capacity
10.6.4. Location of Plant
10.6.5. Name of Raw Material(S) Consumed
With Quantity & Cost
10.7. Section – II
10.7.1. Assets
10.7.2. Cash Flow
10.7.3. Cost as % Ge of Sales
10.7.4. Forex Transaction
10.7.5. Growth in Assets & Liabilities
10.7.6. Growth in Income & Expenditure
10.7.7. Income & Expenditure
10.7.8. Liabilities
10.7.9. Liquidity Ratios
10.7.10. Profitability Ratio
10.7.11. Profits
10.7.12. Return Ratios
10.7.13. Structure of Assets & Liabilities (%)
10.7.14. Working Capital & Turnover Ratios
11. Export & Import Statistics Data
of India
11.1. Export Statistics Data for PP Woven
Sack
11.2. Export Statistics Data for Hdpe
Woven Sack
11.3. Import Statistics Data for PP Woven
Sack
12.Present Manufacturers
13. Manufacturing Process
14. Stage Wise Process Diagram
15. Process Flow Diagram
16. Environmental Aspects Regarding

Plastic
16.1. Usage Rules (Command and Control):
17. Suppliers of Raw Material
18. Suppliers of Plant and Machinery

18.1. Complete Machinery Suppliers
19. Product, Machinery & Raw
Material Photographs
19.1. Product Photographs
19.2. Machinery Photographs
19.3. Raw Material Photographs
20. Plant Layout
21. Quotation of Plant, Machinery

and Equipments from Supplier
Project Financials
• Project at a Glance
Annexure
• Assumptions for Profitability workings ………………………..1

• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & Building
Site Development Expenses
• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory
etc.)
• Other Fixed Assets………………………………………..........….......6

Furniture & Fixtures
Pre-operative and Preliminary Expenses
Technical Knowhow
Provision of Contingencies
• Working Capital Requirement Per Month…………………….…7

Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store
• Overheads Required Per Month and Per Annum…………..…8
Utilities & Overheads (Power, Water and Fuel Expenses
etc.)
Royalty and Other Charges
Selling and Distribution Expenses
• Salary and Wages …………………………………………....…………..9
• Turnover Per Annum …………………………………………….....…10
• Share Capital……………………………………………………….....11
Equity Capital
Preference Share Capital
• Annexure 1 :: Cost of Project and Means of Finance
• Annexure 2 :: Profitability and Net Cash Accruals
 Revenue/Income/Realisation
 Expenses/Cost of Products/Services/Items
 Gross Profit
 Financial Charges
 Total Cost of Sales
 Net Profit After Taxes
 Net Cash Accruals
• Annexure 3 :: Assessment of Working Capital
requirements
 Current Assets
 Gross Working Capital
 Current Liabilities
 Net Working Capital
 Working Note for Calculation of Work-in-
process
• Annexure 4 :: Sources and Disposition of Funds
• Annexure 5 :: Projected Balance Sheets
 ROI (Average of Fixed Assets)

 RONW (Average of Share Capital)
 ROI (Average of Total Assets)
• Annexure 6 :: Profitability Ratios
 D.S.C.R
 Earnings Per Share (EPS)
 Debt Equity Ratio
• Annexure 7 :: Break-Even Analysis
 Variable Cost & Expenses

 Semi-Variable/Semi-Fixed Expenses
 Profit Volume Ratio (PVR)
 Fixed Expenses / Cost
 B.E.P
• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
 Resultant N.P.B.T
 Resultant D.S.C.R
 Resultant PV Ratio
 Resultant DER
 Resultant ROI
 Resultant BEP
• Annexure 12 :: Shareholding Pattern and Stake Status
 Equity Capital
 Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
 Determined Capacity P.A of Products/Services
 Achievable Efficiency/Yield % of
Products/Services/Items
 Net Usable Load/Capacity of Products/Services/Items
 Expected Sales/ Revenue/ Income of Products/ Services/
Items
• Annexure 14 :: Product wise Domestic Sales
Realisation
• Annexure 15 :: Total Raw Material Cost
• Annexure 16 :: Raw Material Cost per unit
• Annexure 17 :: Total Lab & ETP Chemical Cost
• Annexure 18 :: Consumables, Store etc.

• Annexure 19 :: Packing Material Cost
• Annexure 20 :: Packing Material Cost Per Unit
• Annexure 21 :: Employees Expenses
• Annexure 22 :: Fuel Expenses
• Annexure 23 :: Power/Electricity Expenses
• Annexure 24 :: Royalty & Other Charges
• Annexure 25 :: Repairs & Maintenance Expenses
• Annexure 26 :: Other Manufacturing Expenses

• Annexure 27 :: Administration Expenses
• Annexure 28 :: Selling Expenses
• Annexure 29 :: Depreciation Charges – as per Books
(Total)
• Annexure 30 :: Depreciation Charges – as per Books (P
& M)
• Annexure 31 :: Depreciation Charges - as per IT Act
WDV (Total)
• Annexure 32 :: Depreciation Charges - as per IT Act
WDV (P & M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR
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Niir Project Consultancy Services (NPCS)
can provide Detailed Project Report on
How to Start Business of PP-HDPE

Woven Bag, Circular Loom, Plastic
Bag. Profitable Business Ideas
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How to Start Business of PP-

HDPE Woven Bag, Circular

HDPE/PP Woven bags ideally suitable for

Woven Packaging Fabrics, Woven bags and fabrics

Abdos Polymers Ltd.

COST OF PROJECT MEANS OF FINANCE

Buildings 0.00 186.25 186.25 Share Premium 0.00 0.00 0.00

Margin Money - Working Capital 0.00 382.62 382.62

TOTAL 0.00 1231.44 1231.44 TOTAL 0.00 1231.44 1231.44

Individual Cumulative Over GPM PBT PAT Net P/V

Initial 3.00 3.00

BEP - Maximum Utilisation Year 5

Cash BEP (% of Installed Capacity) 54.76%

Total BEP (% of Installed Capacity) 57.26%

IRR, PAYBACK and FACR

Internal Rate of Return .. ( In %age ) 29.76%

Payback Period of the Project is ( In Years ) 2 Years 3 Months

Fixed Assets Coverage Ratio ( No. of times ) 19.895

4. Uses & Applications

7. Different Types of Plastics and Their

8. Various Type of HDPE/PP Bags

10. Financials & Comparison of Major

13. Manufacturing Process

15. Process Flow Diagram

16. Environmental Aspects Regarding

17. Suppliers of Raw Material

18. Suppliers of Plant and Machinery

20. Plant Layout

21. Quotation of Plant, Machinery

• Assumptions for Profitability workings ………………………..1

• Other Fixed Assets………………………………………..........….......6

• Working Capital Requirement Per Month…………………….…7

• Salary and Wages …………………………………………....…………..9

• Turnover Per Annum …………………………………………….....…10

• Annexure 2 :: Profitability and Net Cash Accruals

• Annexure 4 :: Sources and Disposition of Funds

 ROI (Average of Fixed Assets)

• Annexure 6 :: Profitability Ratios

 Variable Cost & Expenses

• Annexure 15 :: Total Raw Material Cost

• Annexure 16 :: Raw Material Cost per unit

• Annexure 17 :: Total Lab & ETP Chemical Cost

• Annexure 18 :: Consumables, Store etc.

• Annexure 20 :: Packing Material Cost Per Unit

• Annexure 22 :: Fuel Expenses

• Annexure 23 :: Power/Electricity Expenses

• Annexure 24 :: Royalty & Other Charges

• Annexure 25 :: Repairs & Maintenance Expenses

• Annexure 26 :: Other Manufacturing Expenses

• Annexure 28 :: Selling Expenses

How to Start Business of PP-HDPE

o One of the leading reliable names in industrial world for providing

o We adopt a systematic approach to provide the strong fundamental

o We have two decades long experience in project consultancy and

Thorough analysis of the project

Economic feasibility study of the

Market potential survey/research

o Ayurvedic And Herbal Medicines, Herbal Cosmetics

o Bamboo And Cane Based Projects