FISHNET ROPES INTRODUCTION

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Alexis Garrett
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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. 1

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 and 12.4 million tons by India is expected to be the 3rd largest consumer of plastics after US and china by 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 2

3 Raw Material produced approx. Raw Material consumed approx. Employment Direct / Indirect Export value approx. Revenue to Government approx. 4.2 million tones 3.7 million tones 2.5 million USD 1104 million Rs crores Demand estimates for major Polymers - INDIA (1000 Tones) LDPE 281 Linear PE / LLDPE / HDPE PP PVC PS PET Bottles PET Film Demand estimates for Engineering Thermoplastics ABS Polyamide ( 6 & 66) PET / PBT Moulding Material 2 3 Polycarbonate Other Thermoplastics Thermo sets Demand estimates for Machinery Injection Moulding Blow Moulding Extrusion Nos 5050 Nos Nos 3

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 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 MT QUALITY SPECIFICATIONS As per customer's specifications. The relevant Indian Standard Specifications are as follows : IS : : Polypropylene Ropes (3-Strand Hawser-laid and 8-strand Plaited). IS : : Manila, Nylon, Polyester and Polypropylene Ropes for Marine Purpose - Guide on Equivalence. PLANT AND MACHINERY No. Description Qty Price (Nos.) (Rs.) mm Extruder, with 7.5 KW D.C. Whole Unit 23,00,000 Drive having speed range 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 4

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. 5

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 lakh Polypropylene Colour materbatch Butyl Stearate ESBO Zinc Stearate TOTAL Packing materials LOCATION LAND AND BUILDING Built up area-sq.ft 3000 Rent p.m.-rs per.5 per sq.ft Advance-10 months.rs UTILITIES Three phase- KW Power charges Rs.lakhs p.a For process-litres per day 5000 For human consumption-litres/day 200 6

7 MANPOWER Nos Monthly wages Total Supervisor Skilled Unskilled Accounts Assistant Sales Executive Security sub total Add benefits 20% Total per month 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 per kg Raw materials As per the details given above Packing materials As per details given above Power Rs lakh per annum at 100% Wages and salaries Rs 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.30,000 per month with 5% annual increase administrative expenses Interest on Term loan 11% per annum 7

8 Interest on working capital Income tax 11 % per annum % on profits MACHINERY SUPPLIERS: 1. M/s. Kolstite Machine Fabrik Ltd., P.B. NO , Off Veera Desai Road Mumbai M/s. Services Unlimited, Plot No. 555, IV Phase, Peenya Industrial Estate Bangalore M/s. Brimco Machinery Corpn., Brimco House, 55, Govt. Indl. Estate, Kandivilli (West) Mumbai M/s. Synmach, B-47, Industrial Estate, Bangalore M/s. Machindra Rope & Thread Company, Unit No. 35, First Floor, Bindal Industrial Estate Kurla-Andheri Road, Sakinaka, Mumbai M/s. UMW Industries Ltd., Post Box No. 2038, Bharathi Nagar, Ganapathy, Coimbatore M/s. BJG Technocrafts Pvt. Ltd., 213, Heera Panna Industrial Estate, Off Aarey Road Gorgeon (East), Mumbai D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad 82415, 11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad Prasad Groups & Companies, Plot No GIDC Industrial Estate, Phase 1 Valva, Ahmedabad HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore RAW MATERIALS (a) POLYPROPYLENE 1. M/s Indian Petrochemical Corpn Ltd, Jawahar Nagar, Vadodara Dist. Ahmedabad

9 2. M/s. Reliance Industries Ltd, Petrochemicals Division, 501, Anna Salai, Chennai M/s. Ram-Nath & Co, 38, Cathedral Road, Chennai FINANCIAL ASPECTS 1. COST OF PROJECT [Rs. lakhs] Land & Building (Advance) 1.50 Plant & Machinery Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC MEANS OF FINANCE Capital Term Loan Term Loan is assumed at 75% of the Machinery value. 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs. lakhs] Years Installed Capacity-MTs Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs Selling Price per MT-Rs Lakhs Sales Value (Rs. lakhs) Raw Materials

10 Packing Materials Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Selling, Admin, & General exp Interest on Term Loan Interest on Working Capital Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals Repayment of Term loan WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses %

11 PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = % Sales Profit before Interest and Tax = 7.95 Total Investment % Profit after Tax = 3.35 Promoters Capital % 6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs. lakhs] Wages & Salaries Repairs & Maintenance 0.73 Depreciation 4.34 Admin. & General expenses 3.97 Interest on TL Profit Before Tax (P) 5.05 BEL = FC x 100 = x 80 FC +P % of installed capacity Or Production volume 78 MTs or Sales Value of Rs lacs x

BLOW MOULDED CONTAINERS

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