PLASTIC COLLAPSIBLE TUBES

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Teresa Edwards
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1 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, gums etc. There are various methods by which polythene collapsible tubes can be manufactured. One is extruding in the form of a continuous hose like tubing which is then cut to desired length. In another process injection moulded heads are then joined to the tubes. Another conventional method practiced for production of collapsible tube is blow moulding technique. The present scheme is based on press blower - moulding machine which produces one piece of non-welded plastic tube with injection moulding head and blow moulded body. MARKET Indian Petrochemical industry is one of the fastest growing sectors of the economy. The petrochemical sector has an average gowth at a rate of 13% per annum, which is more than double the growth of GDP. The usage of polymers for injection moulding and other components used in engineering plastics is bound to increase with the increase in production of automobile vehicles, machinery and other electrical machinery and consumer durables. 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. 1

2 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 Raw Material produced approx. 4.2 million tones Raw Material consumed approx. 3.7 million tones Employment Direct / Indirect 2.5 million Export value approx. USD 1104 million Revenue to Government approx. 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 2

3 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 Plastic collapsible tubes Installed capacity per hour No of working hours per day Capacity per day Capacity per annum 300 days per annum 900 nos nos Lakhs Nos 3

4 PLANT AND MACHINERY No. Description Qty Price (Nos.) (Rs.) A. Production Unit : 1. Fully automatic, mechanically 1 71,50,000 controlled tubes moulding press blower machine (Imported) 2. Heat sealing machine semi- 1 45,000 automatic, vertical, hydraulically operated 3. Injection moulding machine (20 gms) 1 1,65,000 fully automatic (vertical plunger type) Direct locking 4. Overhead water tank along with 1 35,000 pump for recycling of water B. Maintenance Unit : Small Hand tools, oiling and 35,000 greasing equipments C. Testing and Quality Control : Weighing balance (chemicals), 55,000 micrometer, calipers, drop test arrangement for impact test, etc. D. Moulds & Dies 3,15,000 Total 78,00,000 MANAFACTURING PROCESS The granules are fed in the hopper of automatic press blower moulding machine. The granules are pre-heated in three heating zones and plasticised stock is then transferred to nozzle head which is also kept hot. The amount of plastic required for tube is then injected through a ring nozzle against the injection mould holding the tube head and the thread mould. The injection mould with the formed tube head then moves upward and so draws a hose, with uniform wall thickness of plastic melt fed from ring nozzle. This tube is then blown into a water cooled mould, the inner surface of which corresponds to 4

5 the desired finished shape of the tube. A gripper device takes the cooled tubes out of the mould and they are then fed by a topper to a cutting unit. Here the bottom surplus is removed and the tube trimmed to the finish. Another device places the tubes on relating mandrels on an indexing turret, ready for printing. The tubes are then made to pass through a high tension field pre-treatment, and then through printing stations for three colour prints and are lacquered over at a further station. Following this treatment, the tubes are then carried by a chain conveyor to the counter flow hot air dryer, from where they emerge ready for filling. RAW MATERIALS For pieces Qty-MTs Rate/MT Value Rs. Lakhs Polyethylene High Impact Polystyrene Printing ink 2.40 TOTAL Packing materials LOCATION LAND AND BUILDING Built up area-sq.ft 2000 Rent p.m.-rs per.5 per sq.ft Advance-10 months. Rs UTILITIES Powers & Fuels Three phase- KW Power charges Rs. lakhs p.a 9.12 For process-litres per day 0 For human consumption-litres/day 200 5

6 MANPOWER Monthly wages Total Supervisor Skilled Unskilled Accounts Assistant Sales Executive Security sub total Add benefits 20% Total per month TOTAL PER ANNUM-Rs. lakhs 8.06 SCHEDULE OF IMPLEMENTATION If the financing arrangements are finalised the project can be implemented in three months time. COST OF PRODUCTION AND PROFITABILTY Assumptions Installed capacity lakhs tubes/annum Capacity utilisation Year-1-60% Year -2-70% Year-3 onwards- 80% Selling price Rs.4.50 per piece Raw materials As per the details given above Packing materials As per details given above Power Rs.9.12 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 6

7 Depreciation Selling general and administrative expenses Interest on Term loan Interest on working capital Income tax Written down value method -15 % on machinery Rs per month with 5% annual increase 11% per annum 11 % per annum % on profits MACHINERY SUPPLIERS: 1. M/s. Ossberger - Tubbinen Fabric-Abt, Kunts Heffmachinen 8832, Weissen, BURG/BAZERNM, P. O. Box 425, West Germany. 2. M/s Starline Engineering Services, Ideal Indl. Estate, S. Bapat Marg, Bombay M/s Plastopack & Co., 15, Sashibushan Basak Lane, Calcutta M/s R & K Enterprises, 829, GIDC, Makarpura, Baroda M/s Niranjan Plastics,19/7, Botwala Building, Mahim, Bombay M/s Klockner Windsor (I) Ltd, U-6, U-2 Road, Wage Industrial Estate, Bombay M/s Brimco Plastic Machinery (P) Ltd, 55, Brimco House, Govt. Indl. Estate, Bombay 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 , 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

8 FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.00 Plant & Machinery Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC MEANS OF FINANCE Capital Term Loan Term Loan amount is assumed at 75% value of the Machinery. 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs. lakhs] Years Installed Capacity-Nos Utilisation 60% 70% 80% 80% 80% Production/Sales-Nos Selling Price per Piece-Rs

9 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 Repayment of Term loan WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses %

10 PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = 9.61 Sales % Profit before Interest and Tax = Total Investment % Profit after Tax = 9.61 Promoters Capital % 6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs. lakhs] Wages & Salaries 8.89 Repairs & Maintenance 0.73 Depreciation 8.45 Admin. & General expenses 3.97 Interest on TL Profit Before Tax (P) BEL = FC x 100 = x 80 FC +P % of installed capacity x 100 Or production volume pieces or Sales value of Rs lacs 10

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