BLOW MOULDED CONTAINERS

Size: px

Start display at page:

Download "BLOW MOULDED CONTAINERS"

Magdalen Bryan
6 years ago
Views:

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 1

2 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 Turnover Capital Asset Raw Material produced approx. Raw Material consumed approx. Employment Direct / Indirect Export value approx. Revenue to Government approx. 22,000 Nos Rs. 25,000 crores Rs. 47,000 crores 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

3 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 Nos Blow Moulding 5050 Nos Extrusion 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 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 Blow moulded containers Installed capacity per hour No of working hours per day Capacity per day Capacity per annum 300 days per annum 20 kgs Kg 48 MT 3

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, Scrap grinder 1 95, Colour mixer 1 1,00,, Weighing Scale 1 35, Container screen printing device ,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 Miscellaneous plastic Master batches & colour TOTAL Packing materials

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 UTILITIES POWER & WATER Three phase- KW 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 Skilled Unskilled Accounts Assistant Sales Executive Security sub total Add benefits 20% 8800 Total per month 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. 5

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 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 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 per month with 5% annual increase administrative expenses Interest on Term loan 11% per annum Interest on working capital 11 % per annum Income tax % on profits MACHINERY SUPPLIERS 1. M/s Brimco Plastic Machinery Corpn., Plot 55, Govt. Kandivli Indl. Estate, Kandivli (W),Bombay D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andharai East, Mumbai Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad , 5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad

7 7. Prasad Groups & Companies, Plot No GIDC Industrial Estate, Phase 1 Valva, Ahmedabad HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore M/s Boolani Engineering Corpn. 402, Prabhadevi Indl. Estate, Veer Savarkar Road, Bombay J.B. Industries, 7 / 36 PH-2 TNHB, Muthamil Nagar RAW MATERIAL SUPPLIERS 1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE , 2. Maruthi Plastic, Old 3 Thirupali ST Sowcarpet , 3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet Shri Swastic PlastIcs, 57/2, Thirupalli Street 79, 5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari Polychem Ltd, 74 Jamshedji Tata Road, Mumbai FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.75 Plant & Machinery Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC MEANS OF FINANCE Capital 8.10 Term Loan

8 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. 1.20lakhs Sales Value (Rs.lakhs) Raw Materials 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

9 Repayment of Term loan WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses % PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = % Sales Profit before Interest and Tax = % Total Investment Profit after Tax = % Promoters Capital 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 Profit Before Tax (P) 6.28 BEL = FC x 100 = x 80 x 100 FC +P

10 54% of installed capacity or Production volume MTs or Sales value Rs lacs 10

PLASTIC COLLAPSIBLE TUBES

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,