project profile on sodium hypochlorite - msme … profiles.pdf1 project profile on sodium...

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Project Profile On

Sodium Hypochlorite

1. Product Code : Not Available

2. Quality Control & Standards : As per IS 11673:1992

3. Production Capacity : 1200 K.L. per Annum

4. Month & Year of Preparation : January, 2010

Prepared By

Govt. of India Ministry of Micro, Small & Medium Enterprises

MSME – Development Institute C.G.O. Complex, Block “C”, Seminary Hills,

Nagpur – 440006 ( M.S.) Tel. No. (0712)2510046, 2510352, Fax No.(0712)2511985

Visit us at : www.dcmsme.gov.in, www.msmedinagpur.gov.in E – mail : [email protected]

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1. INTRODUCTION :

Hypochlorites are chemical compounds containing the chlorate (I) anion( [OCl]- ). It is a greenish – yellowish liquid commonly referred to as “Bleach”. Sodium Hypochlorite (NaOCl) is a compound that can be effectively used for surface purification, water disinfectants ( Disinfectants are microbial agents that are applied to nonliving objects to destroy microorganisms, the process of hich is known as disinfection), bleaching, odour removal etc. It has a relative density of 1.1 [ 5.5% water solution]. It is unstable and Chlorine evaporates. It is strong oxidizer and reacts with flammable compounds however it’s solution is a weak base that is inflammable. 2. MARKET POTENTIAL: It has following applications in general : It is the main ingredient in laundry bleach. It is used extensively as a

bleaching agent in the textiles, detergents paper & pulp industries. It is used as disinfectant in water and waste water treatment plants and

sanitary equipments. State Government, Corporations, Nagar Parishad etc. are the major

customers of the product to use it as disinfectant in water. It is applied in swimming pools for water disinfection. In Food Processing Industry , it is used to sanitize food preparation

equipments. In petrochemical industry, it is used in petroleum products refining.

The following table shows some of the varying strengths of the product and how the variations are typically used :

Wt % of Sodium Hypochlorite

Common Uses

2 % Shock Chlorination of Wells 3-6 % Household Disinfectant, Laundring Clothes, Dentistry Root

Canal Treatment Disinfectent in Hospitals, Food Processing, Fish Processing etc.

12-16 % Disinfectant in Swimming Pools, Water Treatment, Waste Water Treatment etc.

3. BASIS & PRESUMPTIONS : a. The production is based on single shift of eight hours and 300 working

days per annum. b. The cost in respect of Plant & Machinery has been taken at the time of

preparation of Project Profile, which may vary from place to place and time to time.

c. Labour charges has been taken as per Govt. norms.

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d. It is presumed that plant will work at 50% efficiency in the first year, 60% in the third year and 70% in the third year.

4. IMPLEMENTATION SCHEDULE : It will take about eight months to start commercial production as under : Sr. No.

Activity Estimated Period

01. Registration under MSME Act 0 – 1 Month 02. Preparation of Scheme 0 –1 Month 03. Sanction of Loan 1 – 5 Month 04. Placement of Order for Plant & Machinery 5 – 6 Month 05 Power & Water Connection 5 – 6 Month 06. Installation of Plant & Machinery 6 – 7 Month 07. Procurement of Raw material & Trial Run 7 – 8 Month 08. Commercial Production 8th Month onwards 4. TECHNICAL ASPECTS:

a. Production Capacity : 1200 K.L. per Annum b. Quality Control & Standards : As per IS 11673:1992

The requirements for Sodium Hypochlorite Solution are as under : Sr. No.

Charateristics Requirements Grade 1 Grade 2

01. Relative density (at 250 / 250 C) 1.07 to 1.118 1.20 Min. 02. Available Chlorine (as Cl), percent by mass by

volume 4.0 to 6.0 12.5 to 15.0

03. Total Chlorine, percent by volume ( as Cl) 4.0 to 6.0 12.5 to 15.0 04. Free Alkali (as NaOH), g/l. Min. 1.0 5.0 05. Free Sodium Carbonate (as Na2CO3), g/l, Min. 0.5 0.5 06. Iron ( as Fe), ppm, Max. 0.4 1.0 07. Sodium Chlorate, percent by mass, Max. 0.05 0.3

c. Manufacturing Method : It is produced by Hooker process in the large scale. At the small scale it is produced by reacting Caustic Soda Lye (35%) with dosing of Chlorine gas accompanied by cooling. In a plastic tank first we take Caustic Soda Lye (35%) and then chlorine dosing is done. After 7-8 hours of chemical reaction, sodium hypochlorite (NaOCl) is produced. It is exothermic reaction and temperature is about 35 – 400C.The sample is taken out for checking Chlorine percentage and only after Q.C. approval the product is packed in suitable plastic containers. 2 NaOH + Cl2 NaCl + NaOCl + H2O

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(d) Packaging, Marking & Storing

The material shall be packed in air tight plastic containers or as agreed between the purchaser and the supplier. The containers used shall be dry and free from grease, dirt or other foreign matter likely to cause decomposition of the material.

Each package shall bear legibly and indelibly the following information :

Name & Grade of the Material Indication of the source of the manufacture. Gross & Net mass. Date of Packing. Lot Number Available Chlorine i.e. the measure of the oxidizing power of the chlorine

present as hypochlorite expressed in terms of chlorine with a gram equivalent mass of 35.46 ( to be declared by the manufacturer.)

The material shall be stored in a cool and dark place. While shipping,

the material shall be stored away from boilers or any other source of emanating heat and light.

5. FINANCIAL ASPECTS : Sr. No. Description Quantity Value (Rs.)

a. Land & Building Total Area of 2000 Sq. Feet including 1000 Sq Feet covered area on Rent

5,000.00 b. Machinery & Equipments i) PVC Tank Capacity 2000 Ltrs each 2 Nos. 70,000.00 ii) Laboratory Equipments L.S. 50,000.00 iii) Other Misc. material handling equipments L.S. 10,000.00 iv) Office Furniture & Equipments L.S. 25,000.00 v) Installation of Machinery & Equipments L.S. 10,000.00 vi) Preoperative Expenses L.S. 20,000.00 Total 1,85,000.00

c. RAW & PACKING MATERIAL PER MONTH : Sr. No. Description Quantity Amount (Rs.)

01. Caustic Soda Flakes @ Rs.25 per Kg. 12500 Kg. 3,12,500.00 02. Chlorine gas @ Rs.14 per Kg. 7500 Kg. 1,05,000.00 03. Plastic cans 40 Ltrs. Capacity @ Rs.120

per can. 1250 Nos. 1,50,000.00

04. Other Misc items L.S. 10,000.00

Total 5,77,500.00

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d. SALARY & WAGES PER MONTH : Sr. No. Description Quantity Amount (Rs.)

01. Manager 01 Self 02. Supervisor / Chemist 01 5,000.00 03. Skilled worker 01 3,000.00 04. Unskilled Worker 02 5,000.00 04. Accountant 01 3,000.00

Total 16,000.00 e. UTILITIES PER MONTH: Sr. No. Description Quantity Amount (Rs.)

01. Power @ Rs.5.50 per unit 10 H.P. 6,000.00 02. Water & Fuel L.S 1,000.00

Total 7,000.00 f. OTHER EXPENSES PER MONTH : Sr. No. Description Quantity Amount (Rs.)

01. Rent 5,000.00 02. Telephone Expenses L.S. 1,000.00 03. Postage & Stationery L.S. 500.00 04. Marketing & Traveling Expenses L.S. 5,000.00 05. Maintenance L.S. 500.00 06. Other Misc. Expenses L.S. 1,000.00

Total 13,000.00

6. WORKING CAPITAL PER MONTH : 6,13,500.00

( c + d + e + f )

7. TOTAL CAPITAL INVESTMENT : Sr. No. Description Amount (Rs.)

01. Fixed Capital 1,85,000.00 02. Working Capital for three Months 18,40,500.00

Total 20,25,500.00

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8. FINANCIAL ANALYSIS : a. COST OF PRODUCTION PER ANNUM: Sr. No. Description Amount (Rs.)

01. Raw & Packing Materials 69,30,000.00 02. Salary & Wages 1,92,000.00 03. Utilities 84,000.00 04. Other Expenses 1,56,000.00 05. Interest on borrowed capital @ 13% p.a. 2,63,315.00 06. Depreciation on Machinery & Equipments @ 10 % p.a. 15,500.00

Total 76,40,815.00 Or say 76,41,000.00

b. TURNOVER PER ANNUM :

Total 600 K.L.. of Sodium Hypochlorite @ Rs. 14 Per Ltrs. 84,00,000.00

c. PROFIT PER ANNUM : Profit = Total Turnover - Cost of Production = 84,00,000 - 76,41,000 = 7,59,000 d. PROFIT ON SALES : Profit % Profit = ------------------- x 100 Total Turnover 7,59,000 = ------------------- x 100 84,00,000 = 9.0 %

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e. RATE OF RETURN ON TOTAL CAPITAL INVESTMENT (ROR): Profit ROR = ------------------------------ x 100 Total Capital Investment 7,59,000 = -------------- x 100 20,25,500 = 37.5 % f. BREAK EVEN ANALYSIS : FIXED COST : Sr. No. Particulars Amount (Rs.)

01. Interest on borrowed capital @ 13% p.a. 2,63,315.00 02. Depreciation on Machinery & Equipments @ 10 % p.a 15,500.00 03. 40% of Salary & Wages 76,800.00 04. 40% of other Expenses 62,400.00

Total 4,18,015.00 Or say 4,18,000.00

BREAK EVEN POINT (B.E.P.) : Fixed Cost B.E.P. = --------------------------- x 100 Fixed cost + Profit 4,18,000 = --------------------------- x 100 4,18,000 + 7,59,000 = 35.5 %

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NAME & ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS: 01. M/s. Unique Enterprises, 201, Konarka Mugdha Apartment, Plot No.36,

Saraswati Cooperative Housing Society, Deendayal Nagar, Nagpur - 22. Cont. Person : Dr. Mukund Moholkar,Mb: 09823116709 Tel. No.(07104)235675,(0712)2224362

Visit us at : http./www.uniquepulveriser.com , E – mail : [email protected]

02. M/s. Plasto Containers (India) Pvt. Ltd. J – 3, MIDC, Hingna, Nagpur – 440016. Cont. Person : Shri Neelesh Agrawal. Mb: 09373104501 Tel No. (07104)236672, 236671 03. M/s. Vaibhav Plastimoulds Pvt. Ltd. J – 2, MIDC Area, Nagpur - 440016 Cont. Person : Shri Vishal Agrawal Mb:09890016601

Tel. No. (07104)395486, 395487 Vist us at: www.vaibhavplastimoulds.com , E-mail :[email protected]

NAME & ADDRESSES OF RAW & PACKING MATERIAL SUPPLIERS: 01. M/s. Swastik Acids & Chemicals,

Near Sai Mandir, Opp: Methi Hospital, Chandrashekhar Azad Square, Behind Arafat Hotel, Central Avenue, Nagpur – 440032. Tel. No.(0712)2764908, 2763548, Fax No. No. (0712)2770343. E – mail: [email protected]

02. M/s. Jain Acids & Chemicals 19 / A, Central Avenue Road, Gandhibagh, Nagpur. Cont. Person : Shri Suraj Jain / Shri Satish Jain

Tel No.(0712)2766923, 2761233 03. M/s. Vaibhav Plastimoulds Pvt. Ltd. J – 2, MIDC Area, Nagpur - 440016 Cont. Person : Shri Vishal Agrawal Mb:09890016601

Tel. No. (07104)395486, 395487 Vist us at: www.vaibhavplastimoulds.com , E-mail :[email protected]

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Project Profile

On Magnesium Sulphate

1. Product Code (ASICC Code) : 31545 2. Quality Control & Standards : As per I.P. Standards. 3. Production Capacity : 450 M.T. per Annum. 4. Month & Year of Preparation : March, 2010

Prepared by

Govt. of India, Ministry of MSME

MSME-Development Institute C.G.O. Complex, Block ‘C’, Seminary Hills,

Nagpur – 440 006 (M.S.)

Tel. No. (0712) 2510046, 2510352, Fax No. (0712) 2511985

Visit us at : www.dcmsme.gov.in, www.msmedinagapur.gov.in E-mail: [email protected]

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1. INTRODUCTION: Magnesium sulphate is a chemical compound containing Magnesium Sulphur & Oxygen with the formula MgSO4. It has a tendency to absorb water from the atmosphere, so it is often found in hydrated form i.e. MgSO4. 7H2O. Magnesium Heptahydrate, also known as Epsom Salt is the most commonly available form of Magnesium sulphate. It is an important raw material used in Pharmaceuticals.

2. MARKET POTENTIAL:

Magnesium Sulphate has a variety of uses, both in anhydrous (powder / flakes) form as well as hydrated form. The product is used in pharmaceutical industries as a purgative and has a wide market in pharmaceutical industries in different parts of the country. Some of the key medicinal values of Magnesium sulphate or Epsom salt are as under :

- When used orally, it acts as a laxative. It helps the removal of undigested

food present in the large intestine and by stimulating bowel movement, it acts as a remedy for constipation.

- Magnesium Sulphate when administered in the veins or muscles of pregnant women, helps to delay premature labor and thereby prevent a premature birth.

- Magnesium Sulphate is also used to treat severe attacks of Asthma. - Epsom salts dissolved in water and applied on the joints can give relief to

joint pains of arthritic patients. - It acts as a cosmetic agent and is easily absorbed in to the skin. Thus it

helps in cleanings, soothing inflammations like boils and preventing wrinkling of the skin.

- Epsom salt is also good for many hair – related problems. When applied with shampoo, it absorbs the excess oil from oily hair, and adds glow and bounce to the hair. A warm mixture of Hair conditioner and Epsom salt, when used on hair is said to give it a shine.

In Agriculture & gardening, it is used to correct Magnesium deficiency. Magnesium Sulphate is used in bath salts, particularly in flotation therapy, where high concentrations raise the bath water’s specific gravity, effectively making the body more buoyant. Anhydrous Magnesium Sulphate is commonly used as a desiccant in organic synthesis due to it’s affinity to water.

It may also be used as coagulant for making tofu.

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3. BASIS AND PRESUMPTIONS: a. The estimates are drawn for a production capacity generally considered

techno economically viable for model type of manufacturing activity. b. The production is based on single shift of eight hours and 300 working

days per annum. c. The cost in respect of Plan & Machinery has been taken at the time of


d. Labor charges has been taken as per State Govt. norms. e. The project is based on standard type of manufacturing activity utilizing

conventional techniques of production at optimum levels of performance.

4. IMPLEMENTATION SCHEDULE: It will take about eight months to start commercial production as under: Sr. No. Activity Estimated Period

1. Registration under MSME Act 0-1 Month 2. Preparation of scheme 0-1 Month 3. Sanction of loan 1-5 Month 4. Placement of Order for Plant & Machinery 5-6 Month 5. Power & Water Connection 5-6 Month 6. Installation of Plant & Machinery 6-7 Month 7. Procurement of Raw material & Trial Run 7-8 Month 8. Commercial Production 8th Month onwards

5. TECHNICAL ASPECTS: a. Production Capacity : 450 M.T. Per Annum b. Quality Control & Standards : As per IP Standards Physical & Chemical Properties: Appearance : Transparent Crystals or White Powder. Odor : Odorless Solubility : Soluble in water. pH : Aqueous solution is neutral or slightly acidic. Melting Point : 11240C Stability : Stable under ordinary conditions of use & storage.

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c. Manufacturing Method : Calcined Magnesite Powder is purified mainly from iron impurities by passing it through magnetic separator. Magnesite powder is then reacted with dilute Sulphuric Acid solution. After completion of the reaction the solution is transferred to evaporator, where it is concentrated. The hot concentrated solution is then fed to Crystallizer. The crystals are then centrifuged, dried and packed. Handling and Storage : Keep in a tightly closed containers, stored in a cool, dry, ventilated area. Protect against physical damage. Isolate from incompatible substances. Containers of this material may be hazardous, when empty since they retain product residues (Dust, solids etc.). 6. FINANCIAL ASPECTS : Sr. No. Description Quantity Value (Rs.)

a. Land & Building Factory Shed - 250 Sq.mtrs. Office Godown-50 Sq.mtrs. on rental basis

L.S 10,000.00

b. Machinery & Equipments i) Magnetic Separator 01 No. 25,000.00 ii) Stone ware vessels 100 Lit. capacity 15 Nos. 45,000.00 iii) Evaporator S.S.M.S. Jacket 500 Lit.

capacity 02 Nos. 1,00,000.00

iv) Crystallizer SS with M.S. cooling jacket 500 lit. capacity.

02 Nos. 1,00,000.00

v) Boiler Cap. 100 psi with chimney pipe line 100 kg/hr.

01 No. 1,20,000.00

vi) Centrifuge Basket type 24” diam. 01 No. 80,000.00 vii) Filter Press 16 M.S. Plates 01 No. 60,000.00 viii) Drier 48 Tray. Model 32”x32”x4” Elec. 01 No. 1,00,000.00 ix) Laboratory Equipments 01 No. 25,000.00 x) Misc. equipments such as M.S. Storage

tank, pump & furniture etc. L.S. 50,000.00

xi) Installation of plant & machinery @ 10% of the cost of plant & Machinery.

L.S. 70,500.00

xii) Preoperative Expenses L.S. 25,000.00 Total 8,00,500.00

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c. RAW & PACKING MATERIALS PER MONTH: Sr. No. Description Quantity Amount

(Rs.) 01. Dead Burnt Magnetic MgO content – 85%

approx. @ Rs.6000 per MT 7.5 MTS 45,000.00

02. Sulphuric Acid 98% @ Rs.5000 per MT 15 MTS 75,000.00 03. Misc. chemicals & Packing material L.S. 25,000.00

Total 1,45,000.00

d. SALARY & WAGES PER MONTH: Sr. No. Description Quantity Amount

(Rs.) 01. Manager 01 No. 5,000.00 02. Chemist/Supervisor 01 No. 4,000.00 03. Accountant/Cashier 01 No. 4,000.00 04. Skilled workers 02 Nos. 6,000.00 05. Unskilled workers 06 Nos. 15,000.00

Total 34,000.00 e. UTILITIES PER MONTH: Sr. No. Description Amount

(Rs.) 01. Electricity @ Rs.5.50 per unit. 10 H.P. 6,000.00 02. White Coal @ Rs. 3 per Kg 6,500 Kg. 19,500.00 03. Water L.S. 1,500.00

Total 27,000.00 f. OTHER EXPENSES PER MONTH: Sr. No. Description Amount

(Rs.) 01. Rent 10,000.00 02. Telephone Expenses 1,000.00 03. Postage & Stationery 1,000.00 04. Marketing & Traveling Expenses 10,000.00 05. Repairs & Maintenance @ Rs.100 per M.T. 3,750.00 06. Insurance 2% of the cost of Plant & Machinery 1,175.00 07. Other Misc. Expenses 1,000.00

Total 27,925.00

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g. WORKING CAPITAL PER MONTH: 2,33,925.00 (c + d + e + f ) h. TOTAL CAPITAL INVESTMENT: Sr. No. Description Amount (Rs.)

01. Fixed Capital 8,00,500.00 02. Working capital Three Months 7,01,775.00

Total 15,02,275.00 Or say 15,02,000.00

7. FINANCIAL ANALYSIS: a. COST OF PRODUCTION PER ANNUM: Sr. No. Description Amount (Rs.)

01. Raw & Packing Materials 17,40,000.00 02. Salary & Wages 4,08,000.00 03. Utilities 3,24,000.00 04. Other Expenses 3,35,100.00 05. Depreciation on Machinery & Equipments @ 10% p.a. 70,500.00 06. Interest on borrowed capital @ 13% per annum 1,95,260.00

Total: 30,72,860.00 Or Say 30,73,000.00

b. TURNOVER PER ANNUM):

450 MTS @ Rs. 8,000/- per M.T. Rs.36,00,000.00 c. PROFIT PER ANNUM: Profit = Total Turnover - Cost of Production

= Rs.36,00,000 - Rs.30,73,000

= Rs.5,27,000

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d. PROFIT ON SALES: Profit % Profit = ---------------------- x 100 Total Turnover

5,27,000 = ----------------------------- x 100 36,00,000 = 14.6 %

e. RATE OF RETURN ON TOTAL CAPITAL INVESTMENT (ROR): Profit ROR = ------------------------------- x 100 Total Capital Investment 5,27,000 = ------------------------------- x 100 15,02,000 = 35 %

f. BREAK EVEN ANALYSIS :

FIXED COST : Sr. No. Description Amount

(Rs.) 01. Interest on borrowed capital @ 13 % p.a. 1,95,260.00 02. Depreciation on Machinery & Equipments @ 10% p.a. 70,500.00 03. 40% of Salary & Wages 1,63,200.00 04. 40 % of Other Expenses 1,34,040.00

Total 5,63,000.00

BREAK – EVEN POINT (B.E.P.) : Fixed Cost B.E.P. = ------------------------- x 100 Fixed Cost + Profit

Rs.5,63,000 = ----------------------------------- x 100 Rs.5,63,000 + Rs.5,27,000 = 51.7 %

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NAMES AND ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS: 01. M/s. Mani Agro Chem., 5 - A, Sengalpatty 4th Street, Karungalpatty,

Salem – 636006, Tamilnadu. Tel. No. (0427)2466010, 2469599 Fax No. (0427)2465889 Cont. Person : Shri V. Rasappan Mani / Shri Prem Mani Mobile No. : 09842716688 / 09943068899 E – mail : [email protected], [email protected]

02. M/s. Unique Enterprises, 201, Konarka Mugdha Apartment, 36, Saraswati Cooperative Housing Society, Deendayal Nagar, Nagpur – 22.

Tel. No. (0712)2224362, (07104)235675 Cont. Person : Dr. Mukund Moholkar, Mb: 09823116709 Website: www.uniquepulveriser.com,

E – mail: [email protected]

03. M/s. Qazi Engineering Pvt. Ltd. G-21, Upsidc Industrial Area, Site No.1, Panki, Kanpur – 208022 (U.P.) Tel. No.(0512)2692353, 3242808, 6456117, Fax. No. (0512)2692353 Cont. Person: Shri S.H.Qazi, Mb: 9336118246 Website : www.qaziengineering.org. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS: 1. M/s. Almorah Magnestite Ltd., Nirmal Sadan, Mali Road, Almorah-

Uttaranchal. 2. M/s. Swastik Acids & Chemicals, Near Sai Mandir, Opp: Methi Hospital,

Chandrashekar Azad Square, Behind Arafat Hotel, Central Avenue, Nagpur – 440032. Tel No. (0712)2764908, 2763548, Fax No. 2770343.


3. M/s. Jain Acids & Chemicals, 19 / A, Central Avenue Road, Gandhibagh, Nagpur.

Cont. Person : Shri Suraj Jain / Shri Satish Jain Tel No.(0712)2766923, 2761233

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Project Profile On

Magnesium Stearate

1. Product Code (ASICC Code) : Not Available 2. Quality Control & Standards : As per customer Specs. 3. Production Capacity : 120 M.T. per Annum 4. Month & Year of Preparation : March, 2010

Prepared by

Govt. of India, Ministry of MSME

MSME-Development Institute C.G.O. Complex, Block ‘C’, Seminary Hills,

Nagpur – 440 006 (M.S.)

Tel. No. (0712) 2510046, 2510352, Fax No. (0712) 2511985

Visit us at : www.dcmsme.gov.in, www.msmedinagapur.gov.in E-mail: [email protected]

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1. INTRODUCTION:

Magnesium Stearate is a white soapy powder. It is solid at room temperature. It is combination of Stearic Acid and the essential mineral Magnesium. It is a Magnesium Salt of Fatty Acid [C16 to C18] and contains no trans fatty acids. Magnesium Stearate contains the equivalent of not less than 6.8 % and not more than 8.3 % of MgO and is a mixture of pure Stearic Acid and Palmitic Acid where the content of Stearic Acid is not less than 40% and the sum of the two acids is not less than 90 %. The British Pharmacopeias 1993 describes Magnesium Stearate as consisting mainly of Magnesium Stearate with variable proportions of Magnesium Palmitate and Magnesium Oleate. Stearic Acid also called Octadecanoic Acid is one of the most common long chain fatty acids, found in both natural animal & vegetable fats, known also by its structural description of being an 18 – Carbon chain fatty acid (18:0) . The FDA has affirmed that Stearic Acid is GRAS ( Genrally Regarded As Safe) and can be added to foods in accordance with Goods Manufacturing Practices (GMP), now as a GMP certified manufacturer. Its IUPAC name is Magnesium Octadecanoate with a chemical structure of C36H70MgO4.

2. MARKET POTENTIAL:

Metallic Stearates are used as additives in chemical industries, so as to import certain specific characteristics in product formulations. Important industries using stearates are given below: > Paints and Varnishes, > Cement paints > Leather lacquers and sanding sealers. > Manufacture of compound for PVC Pipes > Rubber Industry > Cosmetics Industry > Pharmaceuticals > Engineering Industries (wire drawing) > Soap Industry. > Tooth Paste

The primary use of Magnesium Stearte is as a pharmaceutical excipient, which means it is among the FDA list of 40 official categories of excipients. It is used as a glidant or granulating agent. A good number of chemical industries in the field of Pharmaceuticals, paints and varnishes, cement paints, cosmetics, PVC pipes manufacture etc. have come into existence throughout the country. These units are using a large quantity of Metallic Stearates especially Calcium Stearate, Zinc Stearate, Magnesium Stearate and Aluminum Stearate. In view of the above future growth of the user industries, the demand for metallic stearates is expected to grow at a faster rate.

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Stearic Acid is a waxy oil fraction that acts as a lubricant to fill capsules, when a dry powdered ingredient is un cooperative, based on issues involving density, stickiness, flow ability under pressure etc. It is also used as an ingredient that helps tablets hold together and break apart properly.

Its major use in the industry as a lubricant, dusting powder, emulsifier, binder, paint and varnish drier etc.. It is used in pharmaceuticals drugs as binder in order to bind tablets and make them smooth. With no side effects known, it is also used as a common additive or preservative in several foods . It is an effective emulsifier used in syrups, ketchups, sauces etc. Confectioneries use it for binding candies etc.

Baby cosmetic powder use it as it provides a softer texture than talcum powder.

When used as industrial binder, it is always taken in lower concentrations. It is an effective binder and even concentrations as low as 5 - 15 %. Higher concentrations can cause compaction problems.

As a lubricant it is added in the powder blend. This is done so that powder blend does not adhere to the capsule or mould when it become s compact.

It is hydrophobic substance i.e. it has negative affinity with water. Hence it can be used in designing firefighting equipments

3. BASIS AND PRESUMPTIONS: a. The estimates are drawn for a production capacity generally considered

techno economically viable for model type of manufacturing activity. b. The production is based on single shift of eight hours and 300 working

days per annum. c. The cost in respect of Plan & Machinery has been taken at the time of


d. Labor charges has been taken as per State Govt. norms. e. The project is based on standard type of manufacturing activity utilizing

conventional techniques of production at optimum levels of performance. 4. IMPLEMENTATION SCHEDULE: It will take about eight months to start commercial production as under: Sr. No. Activity Estimated Period

1. Registration under MSME Act 0-1 Month 2. Preparation of scheme 0-1 Month 3. Sanction of loan 1-5 Month 4. Placement of Order for Plant & Machinery 5-6 Month 5. Power & Water Connection 5-6 Month 6. Installation of Plant & Machinery 6-7 Month 7. Procurement of Raw material & Trial Run 7-8 Month 8. Commercial Production 8th Month onwards

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5. TECHNICAL ASPECTS: a. Production Capacity : 120 M.T. Per Annum b. Quality Control & Standards : As per Customer Specs. c. Manufacturing Method: Magnesium stearate is manufactured by the action of sodium stearate with

the solution of Magnesium Chloride. The precipitate Magnesium Stearate is removed by the filtration washed thoroughly dried, powdered and packed.

Physical & Chemical Properties : Physical Form : White Powder Odor : Odorless Molecular Weight : 591.27 Melting /Freezing Point : 540C Solubility in Water : Insoluble in Water Sp. Gravity : 1.028 6. FINANCIAL ASPECTS : Sr. No. Description Quantity Value (Rs.)

a. Land 300 Sq.mtr. Building covered area 180 Sq.mtrs. on rental basis

L.S 10,000.00

b. Machinery & Equipments i) S.S. Reaction vessel cylindrical 1500 liters

capacity. 1 No. 1,00,000.00

ii) S.S. Tanks Rectangular with conical bottom and fitted with outlet value 500 Kg. Cap.

3 Nos. 1,50,000.00

iii) Filter press plate and frame 18”x18” (24 plates)

1 No. 60,000.00

iv) Drier 100 trays with heating arrangement and with exhaust fan

2 Nos. 2,50,000.00

v) Boiler 100 psi and 100 Kg/hr. 1 No. 1,20,000.00 vi) Misc. equipments viz. Portable stirrer with

motor , Centrifugal pump with motor, Pulveriser with motor Weighing balance etc.

1 No. 1,00,000.00

vii) Laboratory equipment L.S. 25,000.00 viii) Office furniture L.S. 25,000.00 ix) Installation charges @ 10% of the cost of

Plant & Machinery 80,500.00

x) Preoperative Expenses L.S. 25,000.00 Total: 9,35,500.00

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c. RAW & PACKING MATERIALS PER MONTH: Sr. No. Description Quantity Amount

(Rs.) 01. Stearic acid @ Rs. 45 Per kg. 13.2 M.T. 5,94,000.00 02. Soda ash @ Rs. 20 per kg. 2.76 M.T. 55,200.00 03. Magnesium chloride @ Rs. 8 per Kg. 2.17 M.T. 17,360.00 04. Packaging material L.S. L.S. 6,000.00

Total 6,72,560.00

d. SALARY & WAGES PER MONTH: Sr. No. Description Quantity Amount

(Rs.) 01. Manager / Chemist 1 No. 5,000.00 02. Supervisor 1 Nos. 4,000.00 03. Accountant 1Nos. 4,000.00 04. Skilled workers 2 Nos. 6,000.00 05. Unskilled Workers 4 Nos. 10,000.00

Total 29,000.00 e. UTILITIES PER MONTH: Sr. No. Description Amount

(Rs.) 01. Electricity @ Rs.5.50 per unit. 10 HP 6,000.00 02. White Coal 6,500 Kg. 19,500.00 03. Water L.S. 1,500.00

Total 27,000.00

f. OTHER EXPENSES PER MONTH: Sr. No. Description Amount

(Rs.) 01. Rent 10,000.00 02. Telephone Expenses 1,000.00 03. Postage & Stationery 1,000.00 04. Marketing & Traveling Expenses 10,000.00 05. Repairs & Maintenance @ Rs.100 per M.T. 3,750.00 06. Insurance 2% of the cost of Plant & Machinery 1,175.00 07. Other Misc. Expenses 1,000.00

Total 27,925.00 g. WORKING CAPITAL PER MONTH: 7,56,485.00 or say 7,56,500.00 (c + d + e + f )

22

h. TOTAL CAPITAL INVESTMENT: Sr. No. Description Amount (Rs.)

01. Fixed Capital 9,35,500.00 02. Working capital Three Months 22,69,500.00

Total 32,05,000.00 7. FINANCIAL ANALYSIS: a. COST OF PRODUCTION PER ANNUM: Sr. No. Description Amount (Rs.)

01. Raw & Packing Materials 80,70,720.00 02. Salary & Wages 3,48,000.00 03. Utilities 3,24,000.00 04. Other Expenses 3,35,100.00 04. Interest on borrowed Capital @ 13 % per annum 4,16,650.00 05. Depreciation on machinery & equipment @ 10% 80,500.00

Total: 95,74,970.00 Or Say 95,75,000.00

b. TURNOVER PER ANNUM :

120 MTS Magnesium Stearate @ Rs.90,000/- per M.T. 1,08,00,000.00 c. PROFIT PER ANNUM: Profit = Total Turnover - Cost of Production

= Rs.1,08,00,000 - Rs.95,75,000

= Rs.12,25,000

d. PROFIT ON SALES: Profit % Profit = ------------------ x 100 Total Turnover

12,25,000 = ------------------x 100 1,08,00,000 = 11.3 %

23

e. RATE OF RETURN ON TOTAL CAPITAL INVESTMENT (ROR): Profit ROR = ------------------------------- x 100 Total Capital Investment 12,25,000 = ------------------------------- x 100 32,05,000

= 38.2 %

f. BREAK EVEN ANALYSIS :

FIXED COST : Sr. No. Description Amount

(Rs.) 01. Interest on borrowed capital @ 13 % p.a. 4,16,650.00 02. Depreciation on Machinery & Equipments @ 10% p.a. 80,500.00 03. 40% of Salary & Wages 1,39,200.00 04. 40 % of Other Expenses 1,34,040.00

Total 7,70,390.00 Or say 7,70,000.00

BREAK – EVEN POINT (B.E.P.) : Fixed Cost B.E.P. = ------------------------- x 100 Fixed Cost + Profit

Rs. 7,70,000 = ----------------------------------- x 100 Rs. 7,70,000 + Rs.12,25,000 = 38.6 %

NAMES AND ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS: 01. M/s. Mani Agro Chem.

5 - A, Sengalpatty 4th Street, Karungalpatty, Salem – 636006, Tamilnadu. Tel. No. (0427)2466010, 2469599 Fax No. (0427)2465889 Cont. Person : Shri V. Rasappan Mani / Shri Prem Mani Mobile No. : 09842716688 / 09943068899 E – mail : [email protected], [email protected]

24

02. M/s. Unique Enterprises 201, Konarka Mugdha Apartment, 36, Saraswati Cooperative Housing Society, Deendayal Nagar, Nagpur – 22.

Tel. No. (0712)2224362, (07104)235675 Cont. Person : Dr. Mukund Moholkar, Mb: 09823116709 Website: www.uniquepulveriser.com,


03. M/s. Qazi Engineering Pvt. Ltd. G-21, Upsidc Industrial Area, Site No.1, Panki,

Kanpur – 208022 (U.P.) Tel. No.(0512)2692353, 3242808, 6456117, Fax. No. (0512)2692353 Cont. Person: Shri S.H.Qazi, Mb: 9336118246 Website : www.qaziengineering.org. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS: 1. M/s. Almora Magnestite Ltd., Magnesite House , Ranidhara Road, Almora -

263601 (Uttaranchal). Tel. No.(05962)233010, 233023, Fax No. (05962)234164. Cont. Persons :

(i) Shri B.Misra, Managing Director, Mb: 09412093642 (ii) Shri Ashish Pandey, Company Secretary, Mb: 09412093642

(iii) Shri P.S.Rawat, General Manager, (05963)255012 Website : www.almoramagnesite.com ,

E-mail:[email protected] 2. M/s. Swastik Acids & Chemicals, Near Sai Mandir, Opp: Methi Hospital,

Chandrashekar Azad Square, Behind Arafat Hotel, Central Avenue, Nagpur – 440032. Tel No. (0712)2764908, 2763548, Fax No. 2770343.

E – mail: [email protected] 3. M/s. Jain Acids & Chemicals,

19 / A, Central Avenue Road, Gandhibagh, Nagpur.

Cont. Person : Shri Suraj Jain / Shri Satish Jain Tel No.(0712)2766923, 2761233 4. M/s. Tata Chemicals Bombay House, 24, Homy Mody Street, Fort,

Mumbai – 400001 Tel No. (022)66658282, Fax : (022)66658143/44

Website: www.tatachemicals.com

25

Project Profile

1. Product : Soya bean Oil

2. NIC Code (1998) : 211018007 (Based on NIC-1998) 3. Product Code : 12521 (Based on ASICC-2000) 4. Production Capacity : 15000 M.T. PER ANNUM 5. Month & Year of Preparation : March, 2011 6. Prepared by :

Chemical Division Government of India

Ministry of Micro, Small & Medium Enterprises MSME-Development Institute

C.G.O. Complex, Block “C”, Seminary Hills Nagpur – 440006 (M.S.)

Tel. No. (0712)2510046, 2510352, Fax No.2511985 E – mail : [email protected]

Visit us at : www.dcmsme.gov.in , www.msmedinagpur.gov.in

26

1. INTRODUCTION OF THE PRODUCT :

Soya bean oil is obtained from the seeds either by pressing or solvent extraction method. It is the highest volume vegetable oil produced. The oil content in the seed is about 20 % on dry basis. The crude Soya bean oil of good quality has a light amber color, which upon alkali refining is reduced to the light yellow color of most vegetable seed oils. Soya bean oil produced from green or immature beans may contain sufficient chlorophyll to have a greenish cast but this is not usually very evident until after the yellow – red pigments of the oil have been bleached in hydrogenation. Oil produced from badly damaged beans may have a dark brown color, which will be very difficult to remove by refining.

The crude oil particularly obtained by solvent extraction method contains

relatively large amounts (1.5–2.5 %) of non-glyceride materials consisting mainly of phosphatides. The FFA content of good crude Soya bean oil is slightly in excess of 0.5 %.

2. PLANT CAPACITY PER ANNUM : 15000 M.T. per Annum. 3. MARKET & DEMAND ASPECTS :

The solvent extracted Soya bean oil is mainly supplied to Oil refineries, which convert it in to Refined Soya bean Oil. The main use of the oil after refining is for the edible purposes. Particularly Vidarbha region of Maharashtra State is rich in Soya bean. Therefore there are so many refineries, who are buying solvent extracted Soya bean oil to process it further. Looking at the trends of oil used for edible purposes, Soya bean oil is in huge demand. This is also because other edible oils used in this region viz. Ground nut Oil, Sunflower oil, Mustard oil etc. are costly in comparison to Soya bean oil. Refined and partial hydrogenated Soya bean oil is also used in the manufacture of margarines and shortenings. Crude Soya bean oil will be processed further by refineries to convert it in to refined oil, which will be used for edible purposes. So for this area Raw material is available, customers are in plenty mainly because of cost considerations and therefore this project is having very good market potential.

4. BASIS AND PRESUMPTIONS : a. The scheme is based on Three shifts of 8 hours per day and 300 working days

per annum. b. The interest rate on the borrowed capital has been taken as 12 % per annum.

27

c. The cost in respect of Raw Materials, Packing Materials, Machinery & Equipments has been taken at the time of preparation of project profile and may vary from place to place and time to time.

d. The rental Value of production shed is taken as per the prevailing rates and and may vary from place to place.

e. The plant capacity utilization has been taken as 75 %, since plant used for oil extraction is continuous plant.

f. Recovery of oil from the seed has been taken as 18.5 % for the calculation purposes.

5. IMPLEMENTATION SCHEDULE : The project implementation will take about nine months. The break-up of

activities with relative time for each activity is as follows:

Sr. No.

Activity Estimated Time Period (Months)

01. Scheme preparation & approval 0 – 2 02. Registration under MSME Act 2006 and

sanction of loan 2 - 5

03. Placement of Orders for Machines 4 - 5 04. PFA License 5 - 7 05. Power Connection 5 - 7 06. Installation of Machines 7 - 8 07. Recruitment of Staff & Trial run 8 – 9 08. Commercial Production 10TH onwards.

6. LEGAL ASPECTS : The general requirements for obtaining License are as under :

a. Land and Plant Layout. b. Proof of Ownership of Land of Consent letter of owner, if the land is taken

on rent . c. Copy of Memorandum of articles of association or partnership dead, list of

Directors etc. as the case may be. d. Photocopy of the packing material specimen. e. Clearance from State Pollution Control Board.

28

7. TECHNICAL ASPECTS :

a. PRODUCTION CAPACITY : 15000 MT P.A.

b. QUALITY CONTROL & STANDARDS : As per Customer Specs.

C. MANUFACTURING PROCESS :

The Soya bean oil is extracted from the seed by Solvent Extraction Method. It is a process of diffusion of solvent in to the oil bearing cells of the raw material resulting a solution of the oil in the solvent “Hexane”. The entire process is largely divide in to three main sections as follows:

a. Preparatory Section :

An efficient extraction would need that every oil bearing cell of the material is in contact with solvent. Smaller the material size, better the penetration of the solvent in to the oil bearing cells, but to fine a size will prevent the solvent from percolating through the mass. Hence an optimum size is absolutely essential for efficient extraction. To achieve this Soya bean seeds are passed through expanders after cracking, cooking and flaking.

b. Main Extraction :

The prepared material is received in to extraction plant. The extraction chamber consists of a number of solvent sprayers, which sprays the solvent over the entire bed of

raw material. The length & breadth is designed to give sufficient time for intimate contact penetration and percolation of solvent in to raw material. The material coming out of the spraying chamber is deoiled material with solvent which is recovered in the desolventising section, while the mixture of Oil and solvent called Miscella is pumped in to miscella tank, from where it is transferred to desolventiser. c. Desolventisation: The extracted material has a tendency for retaining the solvent with it, and this solvent has to be recovered. The retention varies from 20 % to 35 % weight of the material extracted. The basic principle involved in desolventisation is direct and indirect heating of material with steam to a temperature well above boiling point of solvent and thus entrusting no solvent is left over with material. Vapors of solvent are sent to scrubber, where the solvent to trace vapors is washed. The De oiled and desolventised meal thus obtained is then transported to bagging section with the help of a conveyor. A cooling arrangements is provided to ensure proper cooling of the material for easy bagging and hold moisture 10-12 %.

29

d. Distillation: Mixture of Oil and solvent obtained in the extractor is known as miscella and it normally contains 12% to 18 % of the oil un the solvent. Distillation is performed in three stages under vacuum to ensure that no oxygen is present when the oil is heated to a high temperature. First evaporation takes place in Economizer and concentrates in the first and second, flasher leaving practically only oil behind. This oil is further treated with open steam to ensure that no solvent finds its way along with the oil. The solvent vapors thus produced passes through Oil – vapor separator to separate out any oil particles strapped with the solvent vapors and are then passed to condenser for condensation. 8. FINANCIAL ASPECTS : Sr. No.

Description Quantity Value (Rs.)

(a) Land & Building Covered area of 1000 Sq. Mtrs. on rent

L.S.

30,000

(b) Machinery & Equipments

01. Solvent extraction plant 50 TPD comprising - Elevators, Seed Cleaner, Aspiration system, Cracker, Cooker, Flaker, Roll Grinding attachment, Hydraulic system, Conveyors, Rotary Air Lock, Feed Bin, Micro Level Indicators, Extractor, Rising Hoppers, Discharge Bin, Bulk Flow conveyor, Rotary Air Lock, Rotary Air Lock, Toaster, Dust Catcher New Design, Horizontal Tubular Condensor, Sealing Device, Vapour Cooler, Miscella Holding Tank, Water Solvent Separator, Spent Water Desolventiser, Evaporator, Separator, Pre Heater, Condensors, Oil Stripping Column, Heater, Drier, Oil Holding Tank, Vaccum Equipment, Final Vapour Absorber, Heat Exchangers, Final Vertical Stripper, Accessories and Misc. including installation charges.

L.S.

1,38,60,000

02. Boiler Coal Fired Capacity : 1.5 ton / hour with Chimney, motor & all accessories

1 No. 3,50,000

03. Preoperative Expenses L.S. 25,000 Total 1,42,35,000

30

(c) Raw & Packing Materials per Month: Sr. No. Description Quantity Value (Rs.)

01. Soya bean Seed @ Rs.22000 per MT 937.5 MT 2,06,25,000 02. Hexane @ 55 per Ltr. 425 Ltrs 23,375 03. Other Misc. Chemicals L.S. 20,000 04. Packing Materials viz. HDPE Bags and

other Misc. packing material. L.S. 1,00,000

Total 2,07,68,375

(d) Salary & Wages per Month : Sr. No. Description Nos. Value (Rs.)

01. Manager 01 12,000 02. Supervisor / Chemist 03 18,000 03. Skilled labour 06 24,000 03. Semi – skilled labour 12 36,000 04. Unskilled labour 12 30,000

Total 1,20,000

(e) Utilities per Month : Sr. No. Description Quantity Value (Rs.)

01. Power @ Rs.5.5/ KWH 42000 KWH

2,31,000

02. Water L.S. 20,000 03. White Coal @ Rs.3000 per MT 150 MT 4,50,000

Total 7,01,000

(f) Other Expenses per Month :

Sr. No. Description Quantity Value (Rs.) 01. Rent L.S. 30,000 02. Postage & Stationery L.S. 2,000 03. Telephone L.S. 5,000 04. Repair & Maintenance @ Rs.300 per MT L.S. 2,81,250 05. Insurance @ 2% of Machinery &

Equipment Cost 23,725

06. Marketing & Travelling Expenses L.S. 20,000 Total 3,61,975

(g) Working Capital for One Month (c+d+e+f) : 2,19,51,350

(h) Working Capital for three Months : 6,58,54,050 Or say 6,58,54,000 (i) Total Capital Investment (b+h) : 8,00,89,000

31

9. FINANCIAL ANALYSIS : (a) Cost of production per Annum : Sr. No. Description Value (Rs.)

01. Raw & Packing Materials 24,92,20,500 02. Salary & Wages 14,40,000 03. Utilities 84,12,000 04. Other Expenses 43,43,700 05. Depreciation on Machinery & Equipments @ 10% p.a. 14,21,000 06. Interest on borrowed capital @ 12 % p.a. 96,10,680

Total 27,44,47,880 Or say 27,44,48,000

(b) Turnover per Annum : Sr. No. Description Value (Rs.)

01. 2081 MT Crude Soya bean Oil @ Rs.57000 per MT 11,86,17,000 02. 9000 MT DOC @ Rs.20,000 per MT 18,00,00,000

Total 29,86,17,000

(c) Net Profit per Year :

Net Profit = Total turnover - Total cost of production = 29,86,17,000 - 27,44,48,000 = 2,41,69,000

(d) Profit Ration on Sales :

Net Profit Profit Ratio on Sales = -------------------- x 100 Total turnover 2,41,69,000

= -------------------- x 100 29,86,17,000

= 8.09 % (e) Rate of Return (ROR) on Total Capital Investment: Net Profit per annum ROR = --------------------------------- x 100 Total Capital Investment 2,41,69,000 = ---------------------- x 100 8,00,89,000 = 30.18 %

32

(f) Break Even Analysis : (i) Fixed Cost : Sr. No. Description Amount (Rs.)

01. Depreciation on Machinery & Equipments @ 10% p.a.

14,21,000

02. Interest on Total Capital Investment @ 12 % p.a. 96,10,680 03. 40 % of Salary & Wages 5,76,000 04. 40 % of Other Expenses 17,37,480

Total 1,33,45,160 Or say 1,33,45,000

(ii) Break Even Point (B.E.P.) : Fixed Cost B.E.P. = -------------------------- x 100 Fixed Cost + Profit 1,33,45,000 = --------------------------------- x 100 1,33,45,000 + 2,41,69,000 = 35.57 %

Name and Addresses of Plant and Machinery Suppliers:

1. M/s. M. M. Tekno Engineers, A – 65, MIDC, Taloja – 410208 (Navi Mumbai) Tel. No.91-22-27402073, 27402074, 27402075, Fax No. 91-22-27402078. Contact Person: Shri Pradeep M. Bhandari, Mb: 09769315463. E-mail: [email protected] 2. M/s. Muez Hest India Pvt. Ltd., 231, Blue Rose Industrial Estate, Near Cable

Corporation Western Express Highway, Borivali (E), Mumbai – 400 066. Tel. No.91 – 2228701752, 28541758, Fax No. 91-2228701752. Mb: 09324610477, E-mail: [email protected] , [email protected] Boilers:

1. M/s. Ross Boilers, 33, Burhani Industrial Estate, Kondhwa Bhudruk, Pune – 411 037. Tel. No. 020 - 24269393, 24272293, Fax No.020 – 24269562 Mb. No. 09822012844, 09922433674, Web site : www.rossindia.com

33

2. M/s. Micro Dynamics Pvt. Ltd., T – 181 – 1/A, MIDC Bhosari, Pune – 411 026. Tel. No.020-27120839 / 30685454, Fax No. 020 – 30685466, Mb:09371313151.

Web site : www.indiamart.com White Coal :

1. M/s. Hadoti Biotech Pvt. Ltd., Spl. 3(1) Chambal Industrial Area, Opp. Multimetals, Kota. (Rajasthan) – 324 004, Contact Person: Mr. Shankar Lal Mittal, Phone No. 0744-2209807, Fax No. 0744-2481990, Mob. No. 09414189139 /09413351815, Web : www.hadotiboitech.com E-mail ID: [email protected]

2. M/s. Havisha Biotech, 301 Oasis Complex, Opp Ankur High School, Ahmedabad(Gujarat) – 380 007, Telephone – 079-65220205, Fax: 079-30009780

Contact person: Ms. Dhruti S., Mob. No. 9898003339, Web: www.havishachemcom

3. M/s. Bhakti Bio Coal Engery, A-56, MIDC Katol, Dist. Nagpur (Maharashtra).

Contact Person : Shri Ramarao Kadu Mb: 09423677519.

Name and Addresses of Raw Material Suppliers:

Locally available.

34

Project Profile

1. Product : Disinfectant Fluids ( Phenolic Type )

2. NIC Code (1998) : 311408001 (Based on NIC-1998) 3. Product Code : 32416 (Based on ASICC-2000) 4. Production Capacity : 300 K.L. per Annum. (Valued Rs. 231 lakhs) 5. Month & year of Preparation : February, 2011 6. Prepared by :






35


These are homogeneous solutions of Coal tar acids or similar acids derived from petroleum with or without hydrocarbons or other phenolic compounds including substituted phenolic compounds or a mixture of these or a suitable emulsifier. It is black in colour and on dilution with water it gives translucent off white colour. It contains Monochlorophenol (MCP) whose RWC ( Rideal Walker Constant) value is about 50- 60 or Chloro Xylenol whose RWC value is about 100 – 120. Higher the RWC of the product, better is the quality.

2. PLANT CAPACITY PER ANNUM : 330 K.L PER ANNUM.

3. MARKET & DEMAND ASPECTS :

It is used in our houses, Government as well as private hospitals, public places etc. Being disinfectant and also having germicidal value, it is highly demanded product particularly in hospitals.

4. BASIS AND PRESUMPTIONS : a. The scheme is based on single shift of 8 hours per day and 300 working days

per annum. b. The interest rate on the borrowed capital has been taken as 12 % per annum. c. The cost in respect of Raw Materials, Packing Materials, Machinery &

Equipments has been taken at the time of preparation of project profile and may vary from place to place and time to time.

d. The rental Value of production shed is taken as per the prevailing rates and and may vary from place to place.

e. The plant capacity utilization has been taken as 50 % for the first year, which may subsequently increase to 60% and 70% in the second and third year respectively.


activities with relative time for each activity is as follows:

Sr. No.


01. Scheme preparation & approval 0 – 2 02. Registration under MSME Act 2006 and sanction of loan 2 - 5 03. License from FDA 5 - 6

36

04. Placement of Orders for Machines 6 - 7 05. Power Connection 6 - 7 06. Installation of Machines 7 - 8 07. Recruitment of Staff & Trial run 8 – 9 08. Commercial Production 10TH onwards.

6. LEGAL ASPECTS : The product is covered under the Drug Control Act and all specifications laid

down their in are to be complied with. The general requirements for obtaining Drug License are as under : a. Land and Plant Layout. b. Proof of Ownership of Land of Consent letter of owner, if the land is taken on

rent . c. Copy of Memorandum of articles of association or partnership dead, list of

Directors etc. as the case may be. d. Photocopy of the packing material specimen. e. Clearance from State Pollution Control Board. 7. TECHNICAL ASPECTS : a. PRODUCTION CAPACITY : 300 K.L. per Annum. b. QUALITY CONTROL & STANDARDS : IS 1061 : 1997 Each class of disinfectant fluid shall be of 6 grades depending upon Rideal

Walker (RW) and Staphylococcal (SA) coefficient by rules as given below :

Class Grade Rideal Walker (RW) Coefficient, Min.

Staphylococcal (SA) coefficient, Min.

Black 1 18 -- 2 10 -- 3 5 -- 1A 18 8 2A 10 5 3A 5 2.5

White 1 18 -- 2 10 -- 3 5 -- 1A 18 8 2A 10 5 3A 5 2.5

37

Requirement of Staphylococcal (SA) coefficient has been given to ensure that disinfectant fluids are not unduly selective in their germicidal properties.

C. MANUFACTURING PROCESS : The general formulation of the product may be as under:

Sr. No. Raw Material Quantity ( % ) 01. Rosin 05.0 02. Castor Oil 20.0 03. MCP 10.0 04. Creosote Oil 13.0 05. Caustic Soda 04.0 06. Water Balance

First we take Rosin & Castor Oil in saponification vessel and heat it up to 700C. Now we add caustic soda solution in to it slowly with continuous stirring till golden colour soap is produced. Stop heating and add balance quantity of warm water with stirring till solution is uniform. Allow it to come at room temperature. Now add MCP and creosote oil with slow stirring. Filter if required and pack. Chloro – Xylenol can be used as a substitute for MCP.

8. FINANCIAL ASPECTS :

Sr. No.


(a) Land & Building Covered area of 500 Sq. Mtrs. on rent

L.S.

20,000

(b) Machinery & Equipments 01. M.S. Saponification Vessel, Cap: 100 Ltrs. Per

batch. 1 No. 25,500

02. M.S. Mixing vessel, Cap:250 Ltrs per batch 1 No. 44,000 03. M.S. Storage tank 3 Nos. 66,000 04. Automatic Filling Machine 1 No. 83,000 05. Automatic Sealing Machine 1 No. 17,000 06. Shrinking Machine 1 No. 77,000 07. Other Misc Equipments L.S. 28,000 08. Laboratory Equipments L.S. 60,000 09. Installation of Machinery & equipments @ 10%

of the cost. 40,050

10. Preoperative Expenses L.S. 25,000 Total 4,65,550 Or say 4,66,000

38

(c) Raw & Packing Materials per Month: Sr. No.

Description Rate Quantity Value (Rs.)

01. Rosin Rs.150/Kg. 625 Kg. 93,750 02. Castor Oil Rs.100/Kg 2500 Kg. 2,50,000 03. MCP Rs.180/Kg. 1250 Kg. 2,25,000 04. Creosote Oil Rs.60 /Kg. 1625 Kg. 97,500 05. Caustic Soda Rs.30 / Kg. 500 Kg. 15,000 06. Water L.S. 6000 Kg. 6,000 07. Packing Materials viz. Bottles,

Master Cartons, Bopp Tape etc. L.S. 60,000

Total 7,47,250

(d) Salary & Wages per Month : Sr. No.

Description Nos. Value (Rs.)

01. Manager 01 8,000 02. Supervisor / Chemist 01 5,000 03. Semi – skilled labour 03 9,000 04. Unskilled labour 06 15,000

Total 37,000 (e) Utilities per Month : Sr. No.

Description Rate Quantity Value (Rs.)

01. Power Rs.5.50/unit 20 HP 12,500 02. Fuel & Lubricants L.S. 2,000 03. Water L.S. 1,500

Total 16,000

(f) Other Expenses per Month : Sr. No.


01. Rent L.S. 20,000 02. Postage & Stationery L.S. 1,500 03. Telephone L.S. 1,500 04. Repair & Maintenance @ Rs.600 per KL 7,500

39

05. Insurance @ 2% of Machinery & Equipment Cost

668

06. Marketing & Traveling Expenses L.S. 12,000 07. Other Misc. Expenses L.S. 2,000

Total 45,168 (g) Working Capital for One Month (c+d+e+f) : 8,45,418 (h) Working Capital for three Months : 25,36,254 Or say 25,36,000 (i) Total Capital Investment (b+h) : 30,02,000

9. FINANCIAL ANALYSIS : (a) Cost of production per Annum : Sr. No. Description Value (Rs.)

01. Raw & Packing Materials 89,67,000 02. Salary & Wages 4,44,000 03. Utilities 1,92,000 04. Other Expenses 5,42,016 05. Depreciation on Machinery & Equipments @ 10% p.a. 40,050 06. Interest on borrowed capital @ 12 % p.a. 3,60,240

Total 1,05,45,306 Or say 1,05,45,000

(b) Turnover per Annum : Total sales value of 150 K.L. Black Disinfectant Fluid : 1,15,50,000 @ Rs.77,000 per K.L. (c) Net Profit per Year : Net Profit = Total turnover - Total cost of production = 1,15,50,000 - 1,05,45,000 = 10,05,000 (d) Profit Ration on Sales : Net Profit Profit Ratio on Sales = -------------------- x 100 Total turnover

40

10,05,000 = -------------------- x 100 1,15,50,000 = 8.70 %

(e) Rate of Return (ROR) on Total Capital Investment: Net Profit per annum ROR = --------------------------------- x 100 Total Capital Investment 10,05,000 = ---------------------- x 100 30,02,000 = 33.47 % (f) Break Even Analysis : (i) Fixed Cost : Sr. No.

Description Amount (Rs.)

01. Depreciation on Machinery & Equipments @ 10% p.a. 40,050 02. Interest on Total Capital Investment @ 12 % p.a. 3,60,240 03. 40 % of Salary & Wages 1,77,600 04. 40 % of Other Expenses 2,16,806

Total 7,94,696 Or say 7,95,000

(ii) Break Even Point (B.E.P.) : Fixed Cost B.E.P. = -------------------------- x 100 Fixed Cost + Profit 7,95,000 = -------------------------- x 100 7,95,000 + 10,05,000 = 44.17 %

41

Name and Addresses of Plant and Machinery Suppliers :

1. M/s.Unique Enterprises, 201, Konarka Mugdha Apartment, Plot No.36, Saraswati Cooperative Housing Society, Deendayal Nagar, Nagpur –22.

Contact Person : Dr. Mukund Moholkar, Mb: 09823116709 Tel No. (0712)2273391, (07104)235675, Fax No. (0712)2224362 E-mail: [email protected] , [email protected]

Website: www.uniquepulveriser.com

2. M/s. L & M Automatics Office : 60 / 7, Old Dal Mandi, kanpur – 208001 Tel. No. (0512) 2352570, Fax No. (0512) 2358287 Factory : H-3, Panki Industrial Area, Site – 1, Kanpur – 208022. Tel. No.(0512)2692349, 2692658. 3. M/s. National Engraving Works

Registered Office : 90/201, Phoowali Gali, Anwarganj, Kanpur – 208001 Tel. No. (0512) 2368594, E-mail : [email protected] Works : 123 / 796, Opposite Excellent Motors, Factory Area Fazalganj, Kanpur – 208012 (U.P.) Tel. No. (0512) 2242372, 3942808. Contact Person : Mr. Kazee, Mb:09336118246, 09415486940

4. M/s. Suveja Engineers, U-52, MIDC Hingna Road, Nagpur – 440016. Contact: Shri J. Ghagre, Tel.No. (07104)236153, Mb: 09422147432.

Name and Addresses of Raw Material Suppliers :

1. M/s. Sandeep Chemicals , Near Reshim Oli, Samarth Gali, Budhwari, Nagpur – 440002. Contact: Shri Sandeep Samarth, Tel. No.(0712)2776930

2. M/s. Shabbir Chemicals, Near Reshim Oli, Samarth Gali, Budhwari, Nagpur – 440002.. Contact Person : Shri Shabbir, Tel. No. (0712)2778388.

3. M/s. Swastik Acids & Chemicals, Near Sai Mandir, Methi Hospital, Chandrashekhar Azad Sq., Behind Arafat Hotel, Central Avenue, Nagpur-32

Tel. No.(0712)2764908, 2763548, Fax No. (0712)2770343.

-------- --- -

42

Project Profile on Petroleum Jelly

1. Product Code : 305909002

2. Quality Control & Standards : As per IP, BP, USP

specifications

3. Production Capacity : 150 M.T. per Annum

4. Month & Year of Preparation : January, 2011

Prepared By Govt. of India

Ministry of Micro, Small & Medium Enterprises MSME – Development Institute C.G.O. Complex, Block “C”, Seminary Hills,

Nagpur – 440006 ( M.S.) Tel. No. (0712)2510046, 2510352, Fax No.(0712)2511985

Visit us at : www.dcmsme.gov.in, www.msmedinagpur.gov.in E – mail : [email protected]

43

1. INTRODUCTION :

Petroleum Jelly is also known as Mineral Jelly or Petrolatum. It is mostly used in emulsion form in cosmetics & pharmaceutical for the preparations of various creams, ointments, lotions etc. Commercial Petroleum Jelly is used in the manufacturing of lubricants & Grease. Petroleum Jelly of good quality is used in Vaseline manufacturing. It is also used as a moisturizer in good quality toilet soaps. It also finds its use as a anti rusting agent for iron goods like blade, wire surgical instruments etc. It is available in the market in various forms. It may be white, yellow, green or may be of some colour depending upon ingredients used. This project is prepared for white petroleum jelly, which can be used in cosmetics and pharmaceuticals. Hence strict quality control is required for the manufacturing of this item. 2. MARKET POTENTIAL: Various Cosmetics and pharmaceuticals are used by the large number of people in general for wounds, cuts, burns, skin diseases. In today’s business word, more and cosmetics industries are coming up and there by increasing the demand for the raw materials like petroleum jelly. Hence it can be assumed that the petroleum jelly is having very good market potential in view of development of cosmetic & pharmaceutical industry in India.

3. BASIS & PRESUMPTIONS : a. The production is based on single shift of eight hours and 300 working

days per annum. b. The cost in respect of Plant & Machinery has been taken at the time of


c. Labour charges has been taken as per Govt. norms. d. It is presumed that plant will work at 50% efficiency in the first year, 60%

in the second year and 70% in the third year.

4. IMPLEMENTATION SCHEDULE :

It will take about eight months to start commercial production as under : Sr. No. Activity Estimated Period

01. Registration under MSME Act 0 – 1 Month 02. Preparation of Scheme 0 –1 Month 03. Sanction of Loan 1 – 5 Month 04. Placement of Order for Plant & Machinery 5 – 6 Month 05 Power & Water Connection 5 – 6 Month 06. Installation of Plant & Machinery 6 – 7 Month 07. Procurement of Raw material & Trial Run 7 – 8 Month 08. Commercial Production 8th Month onwards

44

4. TECHNICAL ASPECTS:

a. Production Capacity : 150 M.T. per Annum

b. Quality Control & Standards : As per IP, BP, USP specs

The requirements for Sodium Hypochlorite Solution are as under :

Sr. No. Characteristics Standard

01. Appearance White soft, translucent, unctuous mass.

02. Solubility As per IP 03. Acidity / Alkalinity / light absorption As per IP 04. Fixed oil / fats & rosin, foreign organic

matter As per IP

05. Melting Point 38-560C 06. Sulphated Ash 0.1 % max.

c. PRODUCT MIX : The product mix varies depending upon quality and use of final product. One of the formulae for petroleum jelly may be as under: Sr. No. Item Quantity (%)

01. Paraffin Wax 20 % 02. Microcrystalline Wax 20 % 03. White Oil 60 %

(d) Manufacturing Method :

First of all , the ingredients are weighed as per the formulations. Now

paraffin wax is taken in to reaction vessel with electrical heater (Jacketed). Now micro crystalline wax is added in to reaction vessel. Both the waxes are then melted with continuous mixing and the temperature is maintained between 1200 – 1300 C. Now liquid paraffin is added with continuous stirring (150-200 rpm) at constant temperature, so that ingredients are mixed together to form emulsion or jel. The whole mass is cooled down and sample is taken for testing. After testing, material is packed in suitable containers.

45

FINANCIAL ASPECTS Sr. No. Description Quantity

Value (Rs.)

A. Land & Building Covered Area of 2000 sq. ft. on rent L.S. 10,000

B. Machinery & Equipments

(i) Cylindrical Alluminium jacketed Reaction Vessel 1 No 30,000

with motor & stirer

(ii) Alluminium Storage Vessels Cap:250 Kg. Each. 4 Nos. 30,000

(iii) Laboratory Equipments L.S. 50,000 (iv) Office Furniture L.S. 25,000

Installation & Electrification Charges @ 10% of the cost of Machinery & Equipments 11,000

Total 156,000

C. Raw & Packing Materials per Month

Sr. No. Item

Rate (Rs.)

Qty (Kg.)

Value (Rs.)

(i) Paraffin Wax 90 1,250 112500 (ii) Microcrystalline Wax 225 1,250 281250 (iii) White Oil 80 3,750 300000 (iv) Packing Material L.S. 25,000

Total 718750

D. Staff & Labour per Month. Sr.

No. Item Rate (Rs.) Nos.

Value (Rs.)

(i) Manager 6000 1 6000 (ii) Supervisor / Chemist 4000 1 4000 (iii) Skilled Workers 3000 1 3000 (iv) Unskilled Workers 2500 2 5000 (v) Sales Executive 4000 1 4000

Total 22000

(E) Utilities per Month Sr.

No. Item Rate (Rs.) Qty

Value (Rs.)

(i) Power 5.5 600 3300

(ii) Fuel & Water

L.S. L.S. 1000

Total 4300

46

(F) Other Expenses per Month Sr.

No. Item Value (Rs.)

(i) Rent 10000 (ii) Postage & Staionery 1000 (iii) Telephone 2000 (iv) Repair & Maintenance 1500 (v) Insurance 500 (vi) Marketing & Travelling Expenses 10000

Total 25000

(G) Working Capital per Month

770050

(H) Total Capital Investment (T.C.I.)

Value (Rs.)

(i) Fixed Capital 156,000 (ii) Working Capital for three Months 2310150

Total 2,466,150

Financial Analysis

(a) Cost of Production per Annum Value (Rs.)

(i) Raw Materials 8625000 (ii) Staff & Labour 264000 (iii) Utilities 51600 (iv) Other Expenses 300000

(v) Depreciation on Machinery & equipments@ 10% 15600

(vi) Interest on Total Capital Investment @ 12% p.a. 295938

Total 9552138

(b)

Turnover per Annum @ Rs.75000 per M.T. 75 137000 10275000 for 75 MT

(c) Net Profit per Annum Net profit = Total turnover - Total Cost of Production 722862

47

(d)

Profit on turnover Net Profit % Profit = ------------------------ x 100 7.04 % Total Turnover

(e) Rate of Return (ROR) on T.C.I. Net profit ROR = ---------------- x 100 29.31 % T.C.I.

(f) Break - Even Analysis

Fixed Cost

Value (Rs.)

(i) Depreciation on machinery & Equipments @ 10% 15600

(ii) Interest on Total Capital Investment @ 12% 295938

(iii) 40 % of Salary & Wages 105600 (iv) 40 % of other Expenses 120000

Total 537138

(g) Break - Even Point (B.E.P.)

Fixed Cost B.E.P. = ------------------------------- X 100 42.63 % Fixed Cost + Profit

FINANCIAL ASPECTS Sr. No. Description Quantity Value

Value (Rs.)

A. Land & Building Covered Area of 500 sq. mtrs. on rent

L.S. Rs.10,000.00 20,000

B. Machinery & Equipments

(i) M.S.Saponification Vessel, Cap: 100 Ltrs 1 No 26,000

per batch

(ii) M.S.Mixing Vessel, Cap : 250 Ltrs. per batch. 1 No. 44,000

(iii) M.S. Storage Tank 3 Nos. 66,000 (iv) Automatic Filling Machine 1 No. 83,000

48

(v) Installation & Electrification Charges @ 10% of the 11,000 cost of Machinery & Equipments

Total 250,000

C. Raw & Packing Materials per Month

Sr. No. Item

Rate (Rs.) Qty (Kg.)

Value (Rs.)

(i) Paraffin Wax 90 1,250 112500 (ii) Microcrystalline Wax 225 1,250 281250 (iii) White Oil 80 3,750 300000 (iv) Packing Material L.S. 25,000

Total 718750

D. Staff & Labour per Month. Sr.

No. Item Rate (Rs.) Nos.

Value (Rs.)

(i) Manager 6000 1 6000 (ii) Supervisor / Chemist 4000 1 4000 (iii) Skilled Workers 3000 1 3000 (iv) Unskilled Workers 2500 2 5000 (v) Sales Executive 4000 1 4000

Total 22000

(E) Utilities per Month Sr.

No. Item Rate (Rs.) Qty

Value (Rs.)

(i) Power 5.5 600 3300

(ii) Fuel & Water

L.S. L.S. 1000

Total 4300

(F) Other Expenses per Month Sr.

No. Item Value (Rs.)

(i) Rent 10000 (ii) Postage & Staionery 1000 (iii) Telephone 2000 (iv) Repair & Maintenance 1500 (v) Insurance 500 (vi) Marketing & Travelling Expenses 10000

Total 25000

(G) Working Capital per Month

770050

49

(H) Total Capital Investment (T.C.I.)

Value (Rs.)

(i) Fixed Capital 250,000 (ii) Working Capital for three Months 2310150

Total 2,560,150

Financial Analysis

(a) Cost of Production per Annum Value (Rs.)

(i) Raw Materials 8625000 (ii) Staff & Labour 264000 (iii) Utilities 51600 (iv) Other Expenses 300000

(v) Depreciation on Machinery & equipments@ 10% 25000

(vi) Interest on Total Capital Investment @ 12% p.a. 307218

Total 9572818

(b) Turnover per Annum @ Rs.75000 per M.T. 75 137000 10275000 for 75 MT

(c) Net Profit per Annum Net profit = Total turnover - Total Cost of Production 702182

(d) Profit on turnover Net Profit % Profit = ------------------------ x 100 6.83 % Total Turnover

(e) Rate of Return (ROR) on T.C.I. Net profit ROR = ---------------- x 100 27.43 % T.C.I.

(f)

Break - Even Analysis

50

Fixed Cost

Value (Rs.)

(i) Depreciation on machinery & Equipments @ 10% 25000

(ii) Interest on Total Capital Investment @ 12% 307218

(iii) 40 % of Salary & Wages 105600 (iv) 40 % of other Expenses 120000

Total 557818

(g) Break - Even Point (B.E.P.)

Fixed Cost B.E.P. = ------------------------------- x 100 44.27 % Fixed Cost + Profit

51

NAME & ADDRESSES OF MACHINERY SUPPLIERS : 1. M/s. Unique Enterprises, 201, Konarka Mugdha Apartment, Plot No.36,

Saraswati Cooperative Housing Society, Deendayal Nagar, Nagpur - 22. Cont. Person : Dr. Mukund Moholkar

Mb: 09823116709, Tel. No.(07104)235675,(0712)2224362 Visit us at : http./www.uniquepulveriser.com , E – mail : [email protected]

2. M/s. Bhojwani Engineering Works, 74, Old Bagadganj, Gangabai Ghat Chowk, Nagpur.

3. M/s. New Rolex Engineering Works, 28 Great Nag Road, Nagpur – 440003 4. M/s. Suveja Engineers, U-52, MIDC, Hingna, Nagpur – 440016. Cont. Person : Shri J.K.Ghagre, Tel.No. (07104)232121 Mb:09403593827,

E-mail: [email protected] NAME & ADDRESSES OF RAW MATERIAL SUPPLIERS : 1. M/s. Surya Chemical Industries, Panjwani Market, Tinnal Chowk,

Gandhibagh, Nagpur- 440002. Tel. No.(0712)2767536 Cont. Person: Shri H.D. Nagpal, Mb. No. 09373107557. 2. M/s. Jaysons, 2/22, Earth House, 1ST Floor, Princess Street, Mumbai –

400002. Tel. No.(022)22050264, 22060611. 3. M/s. Gujrat Paraffins Pvt. Ltd., 909 Embassy Centre Nariman Point,

Mumbai. Tel. No.(022)22047593. 4. M/s. Bhagat Minerals, Chhota Haripura, P.O. Jasala Flour Mills, Amritsar

(Punjab). Tel No.2522020, 2522525. NAME & ADDRESSES OF PACKING MATERIAL SUPPLIERS : 1. M/s. Plasto Containers (India) Pvt. Ltd., J – 3, MIDC, Hingna, Nagpur –

440016. Cont. Person : Shri Neelesh Agrawal. Tel No. (07104)236672, 236671, Mb: 09373104501

2. M/s. Vaibhav Plastimoulds Pvt. Ltd., J – 2, MIDC Area,

Nagpur – 440016, Cont. Person : Shri Vishal Agrawal Tel. No. (07104)395486, 395487, Mb:09890016601 E-mail : [email protected]

Vist us at: www.vaibhavplastimoulds.com

52

Project Profile

1. Product : Absorbent Cotton

2. NIC Code (1998) : 38991200 X (Based on NIC-1998) 3. Product Code : 66137 (Based on ASICC-2000) 4. Production Capacity : 150 M.T. per Annum 5. Month & Year of Preparation : August, 2011 6. Prepared by :






53


Absorbent Cotton also known as “Surgical Cotton” or “Cotton Wool” is made from well carded cotton fibers. It is bleached to get good white colour and softened. The sterilized absorbent cotton may be of slightly white in colour. The material should be of uniform quality and offer appreciable resistance when pulled. The average staple length of absorbent cotton is not less than 1.5 cm. It is called absorbent cotton as it absorbs fluids immediately. It should be soft in order to give maximum protection to the wound irritation. The main physical properties desired in a surgical dressing are inertness and lack of irritation during use. Absorbent Cotton provides these properties when manufactured according to certain standards. Raw Cotton is processed by a series of process and rendered hydrophilic in character and free from other external organic impurities for enabling it’s use in surgical dressing.

The use of absorbent cotton started several decades before the growth of this industry, but it gained wider market along with the development of medical facilities in the country after independence. The successive five year plans provided for medical facilities such as construction of hospitals and dispensaries even in villages. Further more growing awareness amongst professionals in the use of hygienic materials increased the demand for absorbent cotton which is also extentively used for making sanitary pads or napkins or filters.

2. PLANT CAPACITY PER ANNUM : 150 M.T. per Annum.

3. MARKET & DEMAND ASPECTS : Demand for Absorbent Cotton depends on various factors. It increases directly with increase in population and number of hospitals, dispensaries, health centers, clinics etc. Health amenities are offered by Government progressively every year by providing hospitals / dispensary facilities even at remote places. Absorbent Cotton is also used for making sanitary towels, filters etc. Government hospitals are the biggest consumers of absorbent cotton. The absorbent cotton is sold mostly through medical stores to private hospitals, clinics etc. whereas the purchase of absorbent cotton for Government hospitals is by calling tenders or through Government agencies. It has excellent market abroad. It is exported to the countries like Japan, Australia and other European countries. 4. BASIS AND PRESUMPTIONS : a. The estimates are drawn for a production capacity generally considered

techno-economically viable for model type of manufacturing activity. b. The scheme is based on single shifts of 8 hours per day and 300 working days

per annum.

54

c. The interest rate on the borrowed capital has been taken as 13 % per annum. d. The cost in respect of Raw Materials, Packing Materials, Machinery &


e. The rental Value of production shed is taken as per the prevailing rates and and may vary from place to place and time to time.

f. The plant capacity utilization has been taken as 70 % for calculation purposes.


activities with relative time for each activity is as follows: Sr. No.


(i) Scheme preparation & approval 0 – 1 (ii) Registration under MSME Act 2006 1 - 2 (iii) Clearance from Pollution Control Board 2 - 5 (iv) Sanction of loan 2 - 5 (v) Approval from Food & Drugs Administration 3 - 5 (vi) Power Connection 4 - 6 (vii) Placement of Orders for Machines 5 - 6 (viii) Installation of Machines 7 - 8 (ix) Recruitment of Staff & Trial run 8 – 9 (x) Commercial Production 9TH onwards.

6. TECHNICAL ASPECTS :

a. PRODUCTION CAPACITY : 150 MT P.A.

b. QUALITY CONTROL & STANDARDS :

This item is covered under drug act and as such it should be manufactured as per Indian Pharma (I.P.) or British Pharma (B.P.) specifications. c. MANUFACTURING PROCESS :

The process of manufacture essentially involves the following operations :

55

(i) OPENING AND CLEANING: Raw cotton in bale form is opened in Crighton opener, it is loosened and dust

and other particles are removed.The cotton is then sent to Kier, where it is steam boiled for about 3 – 4 hours after adding chemicals such as Caustic Soda, Soda Ash, Detergents etc. This treatment removes much of natural waxes and oils and softens and disintegrates any forign matter that may remain after cleaning operation.

(ii) WASHING:

After the cotton is boiled, it is removed from the Kier and send to the tanks for washing.

(iii) BLEACHING:

The washed cotton is not of good colour. It is therefore bleached with chemicals such as Hydrogen Peroxide or Sodium Hypochlorite. The bleaching not only whiten the colour but also improves it’s wetting properties and assists in disintegration of any remaining foreign materials.

(iv) ALKALI REMOVING: The bleached cotton is thoroughly washed again to remove the chemicals. A small quantity of diluted sulfuric acid is also added to neutralize excess alkali. The cotton is then passed through hydro extractor to remove water. It is then sent to a wet cotton opening machine. (v) DRYING:

The cotton so opened is then passed through drier. Where drying machine is not there, the cotton is subjected to sun drying. This method however restricts the capacity of the unit besides the cotton getting mixed up with the dust. (vi) LAPPING:

After the cotton is dried, it is again sent to the blow room, where it is thoroughly opened and made in to laps.

(vii) CARDING: The laps are then fed in to the carding machine, where cotton comes in to thin layers. (viii) ROLLING: Here paper is inserted under the laps and the cotton is rolled and simultaneously compressed.

56

(ix) WEIGHING & CUTTING:

The rolls are then weighed according to the required size. The cut rolls are then further packed in a polythene roll after labeling and putting the weight mark and then send for final packing. LEGAL ASPECTS:

The item is covered under drug act and therefore license for this product is compulsory. This license can be obtained from the office of the Joint Commissioner, Food & Drugs Administration situated in almost each district. The general requirements for obtaining license are as under : i) Land & Plant Layout ii) Proof of Ownership of land or consent letter of owner, if the land is taken on

rent, as the case may be. iii) Copy of memorandum of articles of association or partnership deed, list of

Directors etc. as the case may be. iv) Photocopy of the packing material specimen. v) Clearance from State Pollution Control Board / Department. vi) Copy of registration of the Enterprise under MSME Act 2006. 7. FINANCIAL ASPECTS :

Sr. No.

Description Quantity Value

(a) Land & Building Total 1000 Sq. Meters on rent

L.S.

15,000

(b) Machinery & Equipments (i) Willow / Opener Machine 1 No. 16,000/- (ii) Kier Compartment 1 No. 1,80,000/- (iii) Wet Cotton Opener 1 No. 36,000/- (iv) Hydoextractor 1 No. 65,000/- (v) Drying Chamber 1 No. 3,28,800/- (vi) Racking Tesure Machine 1 No. 57,600/- (vii) Finisher, Scripture with Lap Former 1 No. 3,34,800/- (viii) Cardest Heavy Duty Semi high speed 1 No. 1,56,000/- (ix) Packing Machine 1 No. 22,200/- (x) Circular Cutting Machine 1 No. 11,000/- (xi) Carding Machine 1 No. 24,000/- (xii) Coal Fired Boiler ( Cap:750 Kg./ hour) 1 No. 2,75,000/- (xiii) Testing Equipments, weighing scale, chemical

balance, pH meter, Soxhlet extractor, Crucible, Furnace etc.

L.S. 60,000/-

57

(c) Raw Materials per Month : Sr. No. Description Quantity Value

(i) Raw Ginned Cotton @ 42.50 per Kg. 7700 Kg. 3,27,250/- (ii) Comber or Mill Waste Cotton @ 39.60 Kg. 2800 Kg. 1,10,880/- (iii) Soda Ash @ 22.00 per Kg. 875 Kg. 19,250/- (iv) Caustic Soda @ 25.60 per Kg. 1260 Kg. 32,256/- (v) Bleaching Agents 41 per Kg. 875 Kg. 35,875/- (vi) Wetting Agents i.e. Lisapol etc. L.S. 12,000/- (vii) Packing Materials viz. Paper , Gunny Bags,

Gum, Labels etc. L.S. 58,000/-

Total 5,95,511/-

(d) Salary & Wages per Month : Sr. No. Description Quantity Value

(i) Manager/Chemist 1 No. 7,000/- (ii) Technical Assistant 1 No. 5,000/- (iii) Skilled Worker 5 Nos. 20,000/- (iv) Unskilled Workers 8 Nos. 20,000 (v) Accountant 1 No. 5,000/-

Total 57,000/- (e) Utilities per Month : Sr. No. Description Quantity Value

(i) Power @ 5.50 per unit 10,000 Kwh 55,000/- (ii) White Coal @ 2500 per MT 30 MT 75,000/- (iii) Water & Water Treatment Chemicals L.S. 7,000/-

1,37,000/-

(f) Other Expenses per Month : Sr. No. Description Quantity Value

(i) Rent L.S. 15,000/- (ii) Postage & Stationery L.S. 1,000/-

(xiv) Office Equipment & Furniture L.S. 50,000/- Sub-Total 16,16,400/-

(xv) Electrification & Installation charges @ 10% of the cost of Machinery & Equipments

1,61,640/-

(xvi) Preoperative Expenses L.S. 25,000/- Total 18,03,040/- Or say 18,03,000/-

58

(iii) Telephone L.S. 2,000/- (iv) Repair & Maintenance L.S. 5,000/- (v) Insurance @ 2% of the cost of Machinery &

Equip. 2,700/-

(vi) Marketing & Travelling Expenses L.S. 10,000/- Total 35,700/-

(g) Working Capital for One Month (c+d+e+f) : 8,25,211/- (h) Working Capital for three Months : 24,75,633/- Or say : 24,76,000/- (i) Total Capital Investment (b+h) : 42,79,000/-

9. FINANCIAL ANALYSIS : (a) Cost of production per Annum : Sr. No. Description Value

(i) Raw Materials 71,46,132/- (ii) Salary & Wages 6,84,000/- (iii) Utilities 16,44,000/- (iv) Other Expenses 4,28,400/- (v) Depreciation on Machinery & Equipments @ 10% p.a. 1,61,640/- (vi) Interest on borrowed capital @ 13 % p.a. 5,56,270/-

Total 1,06,20,442/- Or say 1,06,20,000/-

(b) Turnover per Annum : Sr. No. Description Value

(i) 105 MT of Absorbent Cotton @ 1,15,000 per MT 1,20,75,000/- (c) Net Profit per Year : Net Profit = Total turnover - Total cost of production = 1,20,75,000 - 1,06,20,000

= 14,55,000

59

(d) Profit Ration on Sales : Net Profit Profit Ratio on Sales = -------------------- x 100 Total turnover 14,55,000 = -------------------- x 100 1,20,75,000 = 12.04 %

# 9 # (e) Rate of Return (ROR) on Total Capital Investment: Net Profit per annum ROR = --------------------------------- x 100 Total Capital Investment 14,55,000 = ---------------------- x 100 42,79,000 = 34.0 % (f) Break Even Analysis : (i) Fixed Cost : Sr. No. Description Amount (Rs.)


1,61,640/-

02. Interest on Total Capital Investment @ 13% p.a. 5,56,270/- 03. 40 % of Salary & Wages 2,73,600/- 04. 40 % of Other Expenses 1,71,360/-

Total 11,62,870/- Or say 11,63,000/-

(ii) Break Even Point (B.E.P.) : Fixed Cost B.E.P. = -------------------------- x 100 Fixed Cost + Profit

60

11,63,000 = --------------------------------- x 100 11,63,000 + 14,55,000 = 44.42 %

# 10 # Name and Addresses of Plant and Machinery Suppliers:

1. M/s. M/s. Talwandi Technicals, Teka – Naka, Shende Nagar, Kamptee Road,Nagpur – 440 026 (Maharashtra). Mb.91-9822644488.

Web site : www.talwanditechnicals.com 2. M/s. Brown & Company, 46, Nethaji Nagar, Nanjundapuram Road,

Coimbtore, Tamilnadu – 641 036.Tel. No.(0422)2315533, Website: www.spinningspareparts.com

3. M/s. Sri Amman Textile Industries, 392, Rajaji Nagar, Opposite Syndicate Bank,

Kuniamuthur, Coimbtur, Tamilnadu – 641 008. Tel.(0422)2251995, Mb>09944633486, 09345061258

Website: www.sriamman-textile-industries/machinery-spare-parts.html 4. M/s.K.B.Engineering Works, 271/2,Industrial Area-2, Near Lucky Dhram

Kanta, Ludhiana, Punjab – 141 003. Tel.(0161)5089425, Mb.09872819762 Web site : www.kb-engineering-works/spare-parts.html

Boilers: 5. M/s. Ross Boilers, 33, Burhani Industrial Estate, Kondhwa Bhudruk,

Pune – 411 037. Tel. No. 020 - 24269393, 24272293, Fax No.020 – 24269562 Mb. No. 09822012844, 09922433674, Web site : www.rossindia.com


Web site : www.indiamart.com

61

White Coal : 7. M/s. Hadoti Biotech Pvt. Ltd., Spl. 3(1) Chambal Industrial Area, Opp.

Multimetals, Kota. (Rajasthan) – 324 004, Contact Person: Mr. Shankar Lal Mittal, Phone No. 0744-2209807, Fax No. 0744-2481990, Mob. No. 09414189139 /09413351815, Web : www.hadotiboitech.com E-mail ID: [email protected]

8. M/s. Havisha Biotech, 301 Oasis Complex, Opp Ankur High School,

Ahmedabad(Gujarat) – 380 007, Telephone – 079-65220205, Fax: 079-30009780




Name and Addresses of Raw Material Suppliers: Cotton : Locally available but cotton from North India is preferred.

Chemicals:

1. M/s. Triveni Chemicals,135,Pancharatna Char Rasta, G.I.D.C., Vapi -396 195

(Gujrat).Tel 91-260-6618618,91-260-6618624, Mb. 91-9227788155. Website : www.trivenichemical.com 2. M/s. B.K.Chemicals, B-2, Shrusti Apartment, 1st Floor, Near Century Enka,

Colony No.2, Pune – Nasik Highway, Bhosai, Pune- 411 039 (Maharashtra). Tel.91-20-27111941, Mb:91-9371020040, 91-9881418345.

Website : www.bkchemicals.in 3. M/s. Surya Fine Chem, C/102, Sai Grece, Near Eagle Hotel, PCMC Link Road,

Near Petrol Pump,Pune – 411 033 (Maharashtra). Tel. 91-20-65103846, Mb.91-9890443743

Website : www.suryafinechem.com 4. M/s. Swastik Acids & Chemicals,Budhwari, Nagpur – 44 002 Tel.(0712)2763548, 2764908

---------------

-------

62

Project Profile

1. Product : Ferric Alum

2. NIC Code (1998) : 310116708 (Based on NIC-1998) 3. Product Code : 31912 (Based on ASICC-2000) 4. Production Capacity : 2000 M.T. per Annum 5. Month & Year of Preparation : June, 2011 6. Prepared by :






63


Alum is a generic name for double salts of Aluminium Sulphate, Sodium Sulphate or Ammonium Sulphate. In the commercial line Aluminium Sulphate is also known as Alum. It is white in colour. The principal raw material for manufacturing of Alum are Bauxite and Sulphuric Acid.

2. PLANT CAPACITY PER ANNUM : 2000 M.T. per Annum.

3. MARKET & DEMAND ASPECTS : The product has a very good market as present, as this is extensively used in water purification ( to a large extent by different Municipal Corporations), by the leather industries for tanning purposes and by the paper industries. It can also be used as a raw material for detergent cake manufacturing and also in several other products, if quality of Alum is properly controlled. 4. BASIS AND PRESUMPTIONS : a. The estimates are drawn for a production capacity generally considered

techno-economically viable for model type of manufacturing activity. b. The scheme is based on single shifts of 8 hours per day and 300 working days

per annum. c. The interest rate on the borrowed capital has been taken as 13 % per annum. d. The cost in respect of Raw Materials, Packing Materials, Machinery &


e. The rental Value of production shed is taken as per the prevailing rates and and may vary from place to place and time to time.

f. The plant capacity utilization has been taken as 75 % for calculation purposes.


activities with relative time for each activity is as follows: Sr. No.


(i) Scheme preparation & approval 0 – 2 (ii) Registration under MSME Act 2006 and sanction of

loan 2 - 5

64

(iii) Clearance from Pollution Control Board 3 - 6 (iv) Placement of Orders for Machines 4 - 5 (v) Power Connection 4 - 6 (vi) Installation of Machines 6 - 7 (vii) Recruitment of Staff & Trial run 7 – 8 (viii) Commercial Production 9TH onwards.

6. TECHNICAL ASPECTS : a. PRODUCTION CAPACITY : 2000 MT P.A. b. QUALITY CONTROL & STANDARDS :

IS 299:1989 (Ferric Alum Grade II)

Sr. No.

Characteristics Requirement

(i) Water Soluble Alumina Al2O3, % by mass, Min. 15 .0 (ii) Soluble Iron Compounds, % by mass, max. 0.7 (iii) pH of 5 % aqueous Solution, Min. 2.7 (iv) Insoluble Matter, % by mass, Max. 0.5 (v) Basicity ( as Al2O3), % by mass, Max. 0.5 (vi) Lead, ppm, Max. 30 (vii) Arsenic, ppm, Max. 6

c. MANUFACTURING PROCESS : Steam

Al2O3 + 3 H2SO4 Al2(SO4)3 + 3 H2O 1050C

65

Alum is made by dissolving Bauxite in Sulphuric Acid. Crude Bauxite is

crushed to 1” size in Jaw Crusher and then fed in to a pulveriser for further grinding

to 200 mesh size. The powdered bauxite containing about 70-75 % o Alumina, 2 – 3

% of Ferric Oxide is charged in to a lead lined M.S. reaction tank. Sulphuric Acid of

60% concentration is added and the reaction mass is thoroughly agitated by steam. A

mechanical lead lined stirrer may also be fitted to the reaction vessel for uniform

agitation. The temperature is kept at 1050C – 1100C by means of steam. Normally an

excess of Bauxite is fed to achieve maximum conversion. It takes about 8- 10 hours

for complete reaction. When the specific gravity reaches to 60 degree TW, the

solution is run to a large settling tank. In the settling tank, flaked glue is also added

to facilitate coagulation of suspended materials. After settling, the clear solution of

Aluminium Sulphate is decanted or filtered in wooden plate & frame press. The

pressed Cake is washed with water and washings can be used in next batch. If pure

Aluminium Sulphate is required, Barium Sulphide is added in the form of black ash to

reduce Ferric Sulphate, so the Ferrous state effect precipitation of iron. The clear

liquor is drawn from the settling tank and send to the concentrator. It takes about 8-

10 hours for concentration and then concentrated liquor is taken at this stage to the

plastic moulds, where it solidifies on further cooling.

7. FINANCIAL ASPECTS :

Sr. No.


(a) Land & Building Total 1500 Sq. Mtrs. (Covered area of 300 Sq. Mtrs. On rent

L.S.

15,000

(b) Machinery & Equipments (i)

Jaw Crusher, Single toggle type size 5” x 9” with Manganese steel Jaws & side plates, heavy duty fly wheel, Capacity 1 Ton per hour. Complete with 5 H.P. motor and starter.

1 No.

1,10,000/-

(ii) Pulveriser, Swing Hammer type 32” size suction blowers, air separator, complete with 40 HP motor and Starter.

1 No. 3,30,000/-

66

(c) Raw Materials per Month : Sr. No. Description Quantity Value (Rs.)

(i) Bauxite @ Rs.1200/- per MT 42 MT 50,400/- (ii) Sulphuric Acid (98 %) @ Rs.6,000 per MT 57 M.T. 3,42,000/- (iii) Glue & other misc. laboratory chemicals L.S. 10,000/-

Total 4,02,400/-

(d) Salary & Wages per Month : Sr. No. Description Quantity Value (Rs.)

(i) Manager / Chemist 1 No. 6,000/- (ii) Skilled labour 3 No. 9,000/- (iii) Unskilled labour 8 Nos. 20,000/-

Total 35,000/-

(iii) Digester M.S.Lead tank, Capacity 3500 litres, inside Lead lined, covered with acid proof bricks fitted with mechanical stirrer operated by 5 H.P. motor alon with reduction gear assembly, Lead bonded steam coil and discharge valves.

2 Nos. 5,50,000/-

(iv) Settling Tank with conical bottom & lined from Inner side with acid proof brick with discharge valve and Other fittings, Capacity : 3500 Ltrs

3 Nos.

1,98,000/- (v) Evaporation Tanks M.S. Lead bonded Steam heating,

Capacity : 3500 Ltrs. 3 Nos. 1,98,000/-

(vi) Boiler Coal Fired, Capacity : 300 Kgs./ hrs, Smoke tube, multitubular vertical working pressure 100 psi complete with box, steam generator, water heater, motorised pump and overhead tanks , standard boiler mounting fitting, fire doors and bars, ash plate, chimney and refractory etc.

1 No. 4,40,000/-

(vii) Water Softening plant 1 No. 1,00,000/- (viii) Sulphuric Acd Storage tank, 25 MT capacity made of MS

lead lined with acid feeding and discharge attachments etc. 2 Nos. 2,20,000/-

(ix) Acid Pump 1.5” x 1” complete with 3 H.P. motor 1 No. 39,500/- (x) Chain hoist & changing bucket with supporting girders 1 No. 44,000/- (xi) Cost of Moulds L.S. 90,000/- (xii) Chemical Balance, Glassware and misc. equipments for

Chemical Laboratory L.S. 57,500/-

(xiii) Cost of Office furniture & equipments L.S. 40,000/- (xiv) Electrification & Installation Charges @ 10 % of the cost of

machinery & equipments. 2,41,700/-

(xv) Preoperative Expenses L.S. 25,000/- Total 26,83,700 Or say 26,84,000/-

67

(e) Utilities per Month : Sr. No. Description Quantity Value (Rs.)

(i) Power @ Rs.5.5/ KWH 55 HP 17,500/- (ii) Water L.S. 2,500/- (iii) White Coal @ Rs.2,500 per MT 20 MT 50,000/-

Total 70,000/-

(f) Other Expenses per Month : Sr. No. Description Quantity Value (Rs.)

(i) Rent L.S. 15,000/- (ii) Postage & Stationery L.S. 1,000/- (iii) Telephone L.S. 2,000/- (iv) Repair & Maintenance L.S. 5,000/- (v) Insurance @ 2% of the cost of Machinery &

Equip. 4,000/-

(vi) Marketing & Travelling Expenses L.S. 10,000/- Total 37,000/-

(g) Working Capital for One Month (c+d+e+f) : Rs.5,44,400/- (h) Working Capital for three Months : Rs.16,33,200/- Or say : Rs.16,33,000/- (i) Total Capital Investment (b+h) : Rs.43,17,000/- 9. FINANCIAL ANALYSIS : (a) Cost of production per Annum : Sr. No. Description Value (Rs.)

(i) Raw Materials 48,28,800/- (ii) Salary & Wages 4,20,000/- (iii) Utilities 8,40,000/- (iv) Other Expenses 4,44,000/- (v) Depreciation on Machinery & Equipments @ 10% p.a. 2,41,700/- (vi) Interest on borrowed capital @ 13 % p.a. 5,61,210/-

Total 73,35,710/- Or say 73,36,000/-

(b) Turnover per Annum : Sr. No. Description Value (Rs.)

(i) 1500 MT of Ferric Alum @ Rs.5,700 per MT 85,50,000/-

68

(c) Net Profit per Year : Net Profit = Total turnover - Total cost of production = 85,50,000 - 73,36,000

= 12,14,000 (d) Profit Ration on Sales : Net Profit Profit Ratio on Sales = -------------------- x 100 Total turnover 12,14,000 = -------------------- x 100 85,50,000 = 14.20 % (e) Rate of Return (ROR) on Total Capital Investment: Net Profit per annum ROR = --------------------------------- x 100 Total Capital Investment 12,14,000 = ---------------------- x 100 43,17,000 = 28.12 % (f) Break Even Analysis : (i) Fixed Cost : Sr. No. Description Amount (Rs.)


2,41,700/-

02. Interest on Total Capital Investment @ 13% p.a. 5,61,210/- 03. 40 % of Salary & Wages 1,68,000/- 04. 40 % of Other Expenses 1,77,600/-

Total 11,48,510/- Or say 11,49,000/-

69

(ii) Break Even Point (B.E.P.) : Fixed Cost B.E.P. = -------------------------- x 100 Fixed Cost + Profit 11,49,000 = --------------------------------- x 100 11,49,000 + 12,14,000 = 48.62 %

Name and Addresses of Plant and Machinery Suppliers:

1. M/s. Batliboi & Co., 26, R.N. Mukherjee Road, Kolkata - 1. 2. M/s. Rank & Co., Ring Road, Wazirpur Industrial Estate, New Delhi – 52. 3. M/s. Megatech International Pvt. Ltd., G-1, 1428, RIICO Industrial Area,

Phase 5, Bhiwadi (Rajasthan) Contact Person : Shri Praveen Kumar Sharma Tel. No.91-1493-512430, Mb.919772214144. Web site :http://www.cement-plant.com

Boilers: 4. M/s. Ross Boilers, 33, Burhani Industrial Estate, Kondhwa Bhudruk,

Pune – 411 037. Tel. No. 020 - 24269393, 24272293, Fax No.020 – 24269562 Mb. No. 09822012844, 09922433674, Web site : www.rossindia.com


Web site : www.indiamart.com White Coal : 1. M/s. Hadoti Biotech Pvt. Ltd., Spl. 3(1) Chambal Industrial Area, Opp.

Multimetals, Kota. (Rajasthan) – 324 004, Contact Person: Mr. Shankar Lal Mittal, Phone No. 0744-2209807, Fax No. 0744-2481990, Mob. No. 09414189139 /09413351815, Web : www.hadotiboitech.com E-mail ID: [email protected]

70

2. M/s. Havisha Biotech, 301 Oasis Complex, Opp Ankur High School, Ahmedabad(Gujarat) – 380 007, Telephone – 079-65220205, Fax: 079-30009780




Name and Addresses of Raw Material Suppliers:

Bauxite : 1. M/s. Rupa International, 602-P,Majumder Road, 2nd Floor, Kolkata – 700 078 Tel. No.91-33-24842263, Mb:919339206988, 919831561152

Website : www.indiamart.com/rupainternational/ 2. M/s. Om International, 83, 1st Floor, Jai Bhawani Colony, Khatipura, Jaipur

(Rajasthan) – 302 012.Tel. No.91-141-2351935, Mb.91-9314602190, Website : www.minerals-ominternational.com 3. M/s. Dani Impex, 402, Tirupati Plaza, Beside Collector Office, Nanpura, Surat

(Gujrat)- 395 003. Tel No.91-261-2783757, Mb.91-9328404040. Website : www.indiamart.com/dani-impex/menerals.html

Sulphuric Acid: 4. M/s. Triveni Chemicals,135,Pancharatna Char Rasta, G.I.D.C., Vapi -396 195

(Gujrat).Tel 91-260-6618618,91-260-6618624, Mb. 91-9227788155. Website : www.trivenichemical.com 5. M/s. B.K.Chemicals, B-2, Shrusti Apartment, 1st Floor, Near Century Enka,

Colony No.2, Pune – Nasik Highway, Bhosai, Pune- 411 039 (Maharashtra). Tel.91-20-27111941, Mb:91-9371020040, 91-9881418345.

Website : www.bkchemicals.in 6. M/s. Surya Fine Chem, C/102, Sai Grece, Near Eagle Hotel, PCMC Link Road,

Near Petrol Pump,Pune – 411 033 (Maharashtra). Tel. 91-20-65103846, Mb.91-9890443743

Website : www.suryafinechem.com ---------------

71

20 PROJECT PROFILES ON

PLASTIC PRODUCTS

Prepared By

MSME – DEVELOPMENT INSTITUTE MINISTRY OF MSME

GOVT. OF INDIA HARSIDDH CHAMBERS, IV FLOOR, ASHRAM ROAD

AHMEDABAD – 380 014 TEL. NO. (079) 27543147, 27544248 FAX NO. (079) 27540619

E-MAIL: dcdi-ahmbaddcmsme.gov.in Website: www.msmediahmedabad.gov.in

72

I N D E X

SR. NO. I T E M S PAGE NO.

1. HDPE BLOW MOULDED AUTOMOBILE PETROL TANK

2. HDPE BUCKETS

3. HDPE EDIBLE OIL CONTAINERS 15 LTRS. CAP.

4. HDPE LAMINATED COLLAPSIBLE TUBES

5. HDPE LUBE OIL CONTAINER 5 LTRS. CAP.

6. HDPE PIPES

7. HDPE ROTOMOULDED TANKS

8. HDPE SYNTHETIC PAPER

9. LLDPE AGRICULTURE FILM

10. LLDPE PRINTED SHOPPING /CARRY BAGS

11. LLDPE STRETCH CLING FILM

12. LLDPE ZIPPER BAGS

13. PP AIR TIGHT CONTAINERS

14. PP DISPOSABLE SYRINGS

15. PP FILES & FOLDERS

16. PP PAINT CONTAINERS

17. PP ROPES

18. PP WOVEN SACKS

19. PP THERMOFORMING

20. THREE LAYERS CO-EXTRUDED FILM

ANNEXURE

I MACHINERY & EQUIPMENT SUPPLIERS

II RAW MATERIAL SUPPLIERS

73

P R E F A C E

The economic reforms initiated in 1991 laid the foundation for achieving higher

economic growth. Consequently, Indian Polymer Industry has emerged as one of the fastest

growing sectors in the last decade. Products made from plastics are widely used in Packaging,

Agriculture, Automobiles, Teletronics, Roads and Building, Medical Applications etc. because of

its functionality, cheaper and economical, aesthetics appeal, inert to Chemicals, light in weight

etc. Products manufactured are much cheaper to other materials therefore, these are

affordable to common man. These are widely used for various domestic and industrial

applications. New Polymers have been developed, from them different products were

produced to meet the growing demand from various sectors which required high tech products

and with specified quality and specifications. Continuous innovation has led to use of plastics

which has helped to improve quality of life through Internet, Globalization increased speed of

communication, electronic entertainment, Nano technology, Space technology, faster means of

transport, advanced surgical equipments etc. With the use of plastic in bulk quantity, the life

style is changing at a much faster rate.

The present per capita consumption of plastic in our country is around 4

kg., which is very less, as compared to Global average consumption of 24 kgs.

It is expected that India would be ranked third just behind USA and China

consuming around 125 lakhs Tons of Plastics by 2010. Thus the Plastic

industry has very good future and great opportunities to do business in the

newer products apart from the traditional items.

The major suppliers of LDPE/HDPE/HMDPE & PP are RIL, GAIL, Haldia

etc. The present installed capacity for various polymers is around 45.00 lakhs

Tons, which is likely to increase to 67.00 lakhs Tons by 2010 and 85.00 lakh

Tons by 2015. However, the demand at present is around 70.00 lakh tons,

which will be increased to 125.00 lakh tons by 2010 and 220 lakh tons by

2015. In our country around 15 companies supply various polymers. There are

around 25,000 polymer processing units all over the country with around 75%

in the extrusion sector; 18% in Injection Moulding; 5% in Blow Moulding and

74

rest in Rotomoulding etc. The industry provide employment to 30 lakhs

persons directly and indirectly.

With the change in the material substitution, changing in the

consumption pattern, plastic have very good potential for the future

PLASTICULTRE:

The major growth sector is in

- Agriculture

- Green house

- Mulching

- Nursery Bags

- PE & PVC Pipes.

Plastics in Agriculture

PACKAGING:

Around 30% of horticulture products are wasted every year due to inadequate storage and

transport infrastructure. Processed food consisting of semi processed and ready to eat/packed

food industry is estimated to be close to Rs. 4000 crores.

Plastics in Packaging

75

The major growth in the sectors are-

- Material Substitution

- Conservation of natural resources

- Large Agriculture output

CONSUMER DURABLES

Growth in the sector is mainly driven by

- Medical Appliances

- Electrical Appliances & electronic goods

- Furniture Industry

- Booming Automobile Industry

Plastics in medical Appliances

Plastics in Automobile & Aerospace

76

INFRASTRUCTURE

The Government of India has laid greater emphasis on infrastructure

development and many fast track projects are envisaged.

Huge investment being done in some of the projects are -

- Telecom (Additional Basic lines)

- Power (Power generator & transmission Capacity)

- Road (National Quadrangle)

- Ports (Additional Cargo handling facility)

Plastics in Buildings & Roads

77

PLASTIC FOR THE 21ST CENTURY The usage of Plastic have been in all sectors during the last few years. We drive cars with

plastic product, we wear eyeglasses with plastic lenses, we sip water from plastic bottles,

connect/talk with friends/family by cell phones, entertain our self with electronic media etc.

Plastic is now entering in conductive plastics, which means plastic can be made of conduct

electric current. New efforts and development is going to use conducting polymers as diverse

as paper thin Television, and Sensor for Chemical Weapon Detectors. The new development

could propel the production of light weight, durable, roll up computer monitors. If they could

be made cheaper enough, they can even become our daily news paper.

The consumption of plastic is likely to grow 5 to 6 times between 2000 to 2030 which means

tremendous opportunities for new entrepreneurs for setting up industry and providing lot of job

opportunities thereby enhancing living standard in the country.

Entrepreneurs can think of Blow Moulded Bottles upto 1 ltr. capacity for packaging of various

Pharmaceuticals/ cosmetic products. Similarly they can think of Blow Moulded Container from

5 ltr. to 220 litr. cap. for packing of oils, chemicals, powder etc.

With the help of heavy duty Injection Moulding Machines, items like Buckets, Chairs/Stools,

Luggage, Moulded Crates, Dust Bin etc. could be manufactured. Nay, Electronic Components,

Air tight containers, Automobile, Electrical Household components, etc. can also be

manufactured by smaller type of Injection Moulding Machine.

With the help of Extruder Machine, single/two/three/five layer films, stretch/cling films,

laminated sheets, cast film. woven fabric/sacks etc. can be thought of. Similarly,

HDPE/LDPE/PVC pipes of smaller diametric to large diameter could be manufactured by Plastic

Extrusion Machinery. Other Products like Box strapping, Monofilament Yarn, Profile, Sheets

etc. can also be manufactured by Extrusion Machine. Based on various Polymers available in

the market, hundreds of plastic product could be manufactured which have demand all over

the country.

MSME-DI, Ahmedabad prepared 20 Project Profiles on Plastic Items, which could be started by

new entrepreneurs anywhere in the Country.

78

HDPE BLOW MOULDED AUTOMOBILE PETROL TANK

1. INTRODUCTION

Automobile Petrol Tanks are manufactured by Blow Moulding process using HDPE. In

the era of globalisation, the demand for vehicles have increased tremendously and

therefore, the requirement of petrol tanks has increased immensely. India is at a stage

where most global players are setting up shop in the country which indicates the

increasing level of industrialisation in our country.

2. MARKET POTENTIAL

Automobile production, at times, indicates the level of industrialisation of a country.

India is at a stage where most global players are setting up shop in the country.

Currently plastic consumption per car in India is around 60 kg. against global average

of 140 kgs. per car. The production of automobiles in India is around 10 Million and is

expected to reach 14 million by 2009-10. With high growth in Indian Automobile

Industry and also India is becoming global hub for auto components.

As per Working Group Report on Petrochemicals, Ministry of Chemicals and Fertilizers,

the demand of HDPE Blow moulded articles in India is projected to be 523 KT by 2010-

11.

The consumption of HDPE in HDPE Blow Moulded Articles in India in 2004-05 was 155

KT.

3. BASIS & PRESUMPTIONS

(i) The output capacity is taken as 50 Kgs/hr. The unit will work at 20

hrs. per day for 25 working days in a month and 300 days in a

year. The output capacity may vary from machinery to machinery

and the cost of machinery may also vary from supplier to supplier.

(ii) The time period for achieving the full envisaged capacity utilisation

is six months

(iii) The labour wages are as per the prevailing rates in the market

79

(iv) The rate of interest for fixed and working capital is taken as 12 per

cent

(v) The margin money requirement for this project is 30 per cent

(vi) The pay back period of this project is 5 years

(vii) The rate of land is taken @ Rs. 500/-per sq. mtr. and construction

charges are taken @ Rs. 3500 per sq. mtr. This may also vary from

place to place.

(viii) The present profile has to be updated taking into prevailing cost of

land, building, machinery etc. at the time of implementation of the

project

4. IMPLEMENTATION SCHEDULE

The time requirement for preparation of Project Report : Two

months

Time requirement for selection of Site : One month

Time required for registration as Small Scale Unit : One

week

Time required for acquiring the loan Machinery procurement, erection and commissioning : Three months

Recruitment of labourer etc. : One month

Trial runs : One month

5. TECHNICAL ASPECT

MANUFACTURING PROCESS

Automobile components are manufactured by blow moulding process.

Extrusion Blow Moulding

In a typical extrusion blow moulding process, plastic granules are fed

into the hopper of the extruder. These granules travel to the extruder

80

barrel whereby they are heated with the help of electric heaters and

homogenized by the screw in the barrel. The plasticized mass is

extruded into a tube called PARISON. The parison is then inflated into a

mould of required form to contact and set up against the cooled walls of

the mould cavity. The finished product is then extracted from the mould.

The following properties of end product must be ensured during

manufacturing:

- Uniform wall thickness of the container

- Consistency in weight of moulded products

- Uniform colour dispesion throughout the article

- Specified dimensional accuracy

6. QUALITY & STANDARD

HDPE Blow Moulded Petrol tanks are manufactured as per the

Specification of different Automobile Companies.

7. PRODUCTION CAPACITY (Per Annum)

(a) Quantity (M.T.) : 300

(b) Value (Rs.) : 3,60,00,000.00

8. TOTAL POWER REQUIREMENT

Total connected load (KW) : 202

9. POLLUTION CONTROL MEASURES

The unit does not create any pollution. However, a proper ventilation

should be made in the processing area for the better circulation of the

fresh air.

81

10. ENERGY CONSERVATION

Entrepreneurs may select energy efficient machinery and proper planning

has also to be made for saving energy in the unit.

11. FINANCIAL ASPECT

A. FIXED CAPITAL

i) Land & Building: Area Sq.Mtrs. Rate per Sq.mtr. Value (Rs.)

Land 500 500.00 2,50,000.00

Building 300 3500.00 10,50,000.00 --------------- Total: 13,00,000.00 ---------------

ii) MACHINERY & EQUIPMENT

Sr.No. Description of machines Qty. (Nos.) Value (Rs.)

(a) Production Unit

i) Extrusion Blow Moulding Machine 94,00,000.00 (capacity 50 kgs./hour) ii) Scrap Grinder 1,00,000.00

iii) Compressor 5,00,000.00

iv) Cooling Tower 1,00,000.00

(b) Testing Equipment & Other Accessories 2,00,000.00

(c) Electrification & Installation @ 10% of 10,30,000.00 cost & machinery (a) & (b)

(d) Pre-operative expenses 50,000.00

----------------- Total cost of machinery & equipment (a to d) 1,13,80,000.00

----------------- (e) Cost of Moulds & Dies 6,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------

Total: 1,22,80,000.00 ----------------- Fixed Capital = (i + ii) = 13,00,000 + 1,22,80,000

82

= 1,35,80,000.00

B. WORKING CAPITAL

(i) Staff and Labour (Per Month)

---------------------------------------------------------------------------------- Designation Nos. Salary (Rs.) Total Rs.)

---------------------------------------------------------------------------------- Production Engineer/ Manager 01 10,000.00 10,000. 00

Sales Executive 01 5,000.00 5,000.00

Accountant-cum- Store Keeper 01 4,000.00 4,000.00

Watchman 02 3,000.00 6,000.00

Skilled Workers 03 3,500.00 10,500.00

Helpers 03 3,000.00 9,000.00 ------------ 44,500.00

Add perquisite @ 10% of the salary 4,450.00 ------------ Total: 48,950.00

Or Say: 49,000.00

ii) Raw Material (P.M.) Qty.(Kg/Tons) Rate Rs./MT (Rs.)

HDPE Granules 25 MT 75,000 18,75,000.00

(iii) Utilities (per month): (Rs.)

i) Power 3,03,000.00 (60% utilisation x 202 KW x 500 hrs.xRs.5 per unit)

ii) Water 2,000.00 -------------- Total: 3,05,000.00 -------------

iv) Other Contingent Expenses (per month) (Rs.)

a) Repairs and Maintenance 1,000.00

b) Transportation charges 5,000.00

c) Postage and stationery 1,000.00

d) Telephone/Fax/Computer 2,000.00

83

e) Consumable Stores 1,000.00

f) Advertisement & Publicity 2,000.00

g) Insurance 3,000.00

h) Miscellaneous Expenses 1,000.00

------------ Total: 30,000.00 -----------

12. TOTAL WORKING CAPITAL (PER MONTH) (Rs.)

i) Staff and Labour 49,000.00

ii) Raw Material 18,75,000.00

iii) Utilities 3,05,000.00

iv) Other Contingent Exp. 30,000.00 --------------- Total: 22,59,000.00 ------------ Working Capital for 3 months 67,77,000.00

13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital 1,35,80,000.00

B. Working Capital for 3 months 67,77,000.00 ------------------ Total: 2,03,57,000.00 ----------------

14. FINANCIAL ANALYSIS

A. Cost of Production (per year) (300 days)

(a) Total Recurring Cost 2,71,000.00

(b) Depreciation on building @ 5% 52,500.00

(c) Depreciation on machinery & equipment @ 10% 11,38,000.00

(d) Depreciation on Diesm& Moulds & Office 1,80,000.00 Equipment @ 20%

(e) Interest on total Capital Investment @ 12% 24,42,840.00 -----------------

Total: 3,09,21,340.00

Or Say: 3,09,21,000.00

84

B. Sales/Turn over (per year)

Item Qty.(MT) Rate (MT) Value (Rs.)

HDPE Blow Moulded 300 M.T. 1,20,000.00 3,60,000.00 Automobile Petrol Tank

C. Net Profit (per year) Sales - Cost of Production = Profit

Rs.3,60,00,000 Rs.3,09,21,000 = Rs. 50,79,000

D. Net Profit Ratio = Net Profit x 100 Sales = 50,79,000 x 100 = 14.1% 3,60,00,000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 50,79,000 x 100 = 25.0% 2,03,18,000 F. Break-even Point

Fixed Cost (Per Year) (Rs.)

a) Depreciation on Building @ 5% 52,500.00

b) Depreciation on Machinery & Equipment @ 10% 11,38,000.00

c) Depreciation on Mould/Dies& Office Equipment 1,80,000.00 @ 20%

d) Insurance 1,20,000.00

e) Interest on total Capital Investment 24,42,840.00

f) 40% of Salary and wages 2,35,200.00

g) 40% of other contingent expenses 96,000.00 -------------- Total: 42,64,540.00

Or Say: 42,65,000.00

85

Net Profit (Per Year)

B.E.P% = Fixed Cost x 100 Fixed Cost + Net Profit

= 42,65,000 x 100 42,65,000 + 50,90,000

= 42,65,000 x 100 93,55,000

= 45.60%

86

HDPE BUCKETS – 5 LTRS TO 20 LTS.

1. INTRODUCTION

Plastic Buckets have been used in Indian households for over 30 years in

every strata of society. The traditional galvanised iron, aluminium and

brass buckets have been to a great extent been replaced by HDPE

moulded buckets. The important performance characteristics they

provide include lightness, unbreakablility, ease in handling, safety in use,

resistance to boiling water and chemicals, colour variability to match

environment and economical cost. The HDPE Buckets are available in

the market ranging from 13.5 litres to 25 litres capacity. However, the

bucket having 21 litre capacity is the most popular in the market.

2. MARKET POTENTIAL

In accordance with the Working Group Report on Petrochemicals,

Ministry of Chemicals & Fertilizers, the demand of total HDPE Injection

Moulded items including buckets in India is projected to be 1164 Kilo

Tonnes by 2010-11 having growth rate @ 16%. The consumption of

HDPE Injection Moulded Items in India had been 134 Kilo Tonnes during

the year 2004-05. However, the moulded buckets and mugs are fast

moving items. The growth rate and demand is envisaged on an average

11 – 12 percent per annum.





and the cost of machinery may also vary from supplier to

supplier.

87


is six months



cent





place to place.



project


The Time requirement for preparation of Project report :

Two months

Time requirement for selection of Site : One

month

Time required for registration as Small Scale Unit :

One Week

Time required for acquiring the loan Machinery procurement, erection and commissioning : Three

months

Recruitment of labourer etc. : One

month


5. TECHNICAL ASPECT


88

HDPE Buckets can be moulded on Ram type or Screw type preplasticiser

machines. The latter is preferred. The process involves feeding the raw

material to the machine through a hopper. The barrel is heated to melt

the material, which is injected into the mould halves by the forward

movement of the screws into the cavity. The mould cavity is cooled by

passage of water at ambient or low temperature to freeze the molten

material. The pressure of the screw is held for some time and then it

retracts by screw rotation. At the end of the moulding and cooling cycle,

the mould halves open and the moulded item is extracted manually or

automatically. Thus the entire moulding cycle comprising injection,

holding the injection pressure, cooling and the idle time for extracting

the moulding is completed.


Buckets may be manufactured as per customer requirement or As per IS

: 3730 Specification



(b) Value (Rs.) : 3,75,00,000.00






fresh air.


89




A. FIXED CAPITAL i) LAND & BUILDING:

Area sq. mtrs. Rate Rs. per Sq. mtr. (Rs.) Land 700 500 3,50,000.00

Building 350 3500 12,25,000.00

--------------- Total : 15,75,000.00 -----------------------

ii) MACHINERY & EQUIPMENT Sr. No. Description of machines Qty.(Nos.) (Rs.)

(a) Production Unit

1) Injection Moulding 350 Ton Capacity 35,00,000.00

2) Compressor 5 Kg Pressure 20,000.00

3) Cooling Tower 2,00,000.00

4) Scrap Grinder 75,000.00


(c) Electrification & Installation @ 10% of cost & machinery (a) & (b) 3,89,500.00

(c) Pre-operative expenses 50,000.00

--------------- Total cost of machinery & equipment ( a to d ) 43,34,000.00 ---------------

(e) Cost of Moulds & Dies 2,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc 3,00,000.00 --------------- Total: 48,34,500.00 ---------------

Fixed Capital = (i) + (ii) 15,75,000 + 48,34,500 = 64,09,500.00 Or Say 64,10,000.00

90

B. WORKING CAPITAL

i) Staff and Labour (Per Month)

Designation Nos. Salary (Rs.) (Rs.) __________________________________________________________

Production Engineer/Manager 01 10,000.00 10,000.00

Sales Executive 01 5,000.00 5,000.00

Accountant-cum- Store Keeper 01 4,000.00 4,000.00

Watchman 02 3,000.00 6,000.00

Skilled Workers 03 3,500.00 10,500.00

Helpers 03 3,000.00 9,000.00

Electrician 02 3,500.00 7,000.00 ----------- Total: 51,000.00

Add perquisite @ 10% of the Salary 5,100.00 ------------ Total: 56,100.00

Or say Rs. 56,000.00 ii) Raw Material (Per Month) Qty. (Tones) Rate Rs./MT (Rs.)

HDPE Granules 25 75000 18,75,000.00

iii) Utilities (per month): (Rs.)

a) Power 7,20,000.00

(60% utilisation x 450 KW x 500 hrs. x Rs. 5 per unit)

b) Water 2,000.00 -------------- Total: 7,22,000.00 ------------- iv) Other Contingent Expenses (Per month) (Rs.)

a) Repairs and Maintenance

2,000.00

b) Transportation Charges 10,000.00

91


d) Telephone/Fax/Computer 2,000.00

e) Consumable Stores 1,000.00

f) Advertisement & Publicity 2,000.00


h) Miscellaneous Expenses 1,000.00 ------------ Total: 26,000.00

------------ 12. TOTAL WORKING CAPITAL ( Per Month ) (Rs.)




iv) Other Contingent Exp. 26,000.00 ----------------

Total: 26,79,000.00 ---------------- Working Capital for 3 months 80,37,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital 64,10,000.00

B. Working Capital for 3 months 80,37,000.00

----------------- Total: 1,44,47,000.00 ----------------- 14. FINANCIAL ANALYSIS

A. Cost of Production (per year) (Rs.)

(a) Total Recurring Cost 3,21,48,000.00

(b) Depreciation on building @ 5% 61,250.00

(c) Depreciation on machinery& equipment @ 10% 4,33,450.00

(d) Depreciation on Dies & Moulds @ 20% 40,000.00

(e) Depreciation on office equipment @ 20% 60,000.00

(f) Interest on total Capital Investment @ 12% 17,33,640.00 -----------------

92

Total: 3,44,76,340.00

Or Say Rs. 3,34,76,000.00

B. Sales/Turn over (per year) Item Qty.( MT) Rate (MT) Value (Rs.)

HDPE Buckets 5 litrs. 20 ltrs. 300 1,25,000 3,75,00,000.00

C. Net Profit (Per year)

Sales(Rs) – Cost of Production (Rs.) = Profit (Rs.)

3,75,00,000 - 3,44,76,000 =

30,24,000

D. Net Profit Ratio = Net Profit x 100

Sales = 30,24,000 x 100 = 8.06% 3,75,00,000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 30,24,000 x 100 = 21.0% 1,44,47,000

F. Break-even Point

Fixed Cost (Per Year) Rs.

a) Depreciation on Building @ 5% 61,250.00

b) Depreciation on Machinery & Equipment @ 10% 4,33,450.00

c) Depreciation on Moulds/Dies & Office Equipment 1,00,000.00 @ 20%

d) Insurance 72,000.00

e) Interest on total capital investment 17,33,640.00

f) 40% of salary and wages 2,68,800.00

g) 40% of other contingent expenses 96,000.00

93

--------------- Total: 27,65,140.00

--------------------------

Or say Rs. 27,65,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 27,65,000 x 100 27,65,000 + 30,24,000 = 27,65,000 x 100 57,89,000 = 47.52%

94

HDPE EDIBLE OIL CONTAINER 15 LTR. CAP.

1. INTRODUCTION

Today India is one of the biggest consumers of edible oil in the world.

However, due to improper packaging, adulteration of edible oil is always

a big worry for the oil manufacturers and consumers. The Government is

also taking serious view about the major health hazard caused due to

adulteration and is committed to ensure safe and sterile packaging of

edible oil in the interest of the health of the average Indian. Currently

more than 90% of edible oil is supplied in the market in unpacked form

or reusable tin packs of 15 kgs. However, 15 kgs. plastic containers are

better material compared to conventional packing as far as safe and

economical packaging is concerned. Beside, 15 kgs, packaging conforms

to the storage mentality of the average Indian household who generally

stock their average yearly requirement of edible oil well in advance in 15

kgs. tin containers. Plastic containers score over time packing in

handling low weight, energy conservation and assurance of safe and

tamper proof packing.

2. MARKET POTENTIAL

Due to some quality maintenance and hygienic conditions requirement,

the Government has imposed the partial ban on the safe of unpacked

edible oil in the market. By seeing this fact, it is assumed that there will

be good demand for the plastic containers as these are economical as

compared to conventional metal containers. The new concept of packing

in HDPE containers is likely to pick up in the near future. As compared to

metal container, it is easy to manufacture HDPE Containers.

95

In accordance with the Report of Working Group on Petrochemicals,

Ministry of Chemicals & Fertilisers, the demand for total HDPE Blow

Moulded Articles in the country is projected to be 523 Kilo Tonnes by

2010-2011 having a growth rate @ 15%. However, the total

consumption of HDPE Blow Moulded Articles in the country had been 115

Kilo Tonnes during the year 2004-05.

16



hrs. per day for 25 working days in a month and 300 days in

a year. The output capacity may vary from machinery to

machinery and the cost of machinery may also vary from supplier

to supplier.


is six months



cent





place to place.



project.


96

The Time requirement for preparation of Project report : Two

months



Week




5. TECHNICAL ASPECT MANUFACTURING PROCESS These containers are being produced by extrusion blow moulding

process. Raw Material HDPE is fed into the hopper and is melted in the

cylinder by application of heat. This molten mass is conveyed by means

of screw and stored in an accumulator. The accumulated plastic –

mass (predetermined in weight) is

17

forced through a die to form a tube called the parison. Taking the tube

inside the mould and sealing one end, the parison is inflated by blowing

air inside the mould through an air nozzle. The mould is cold by

circulating of cold water through the cooling channels of the mould. The

article is ejected automatically by machine. Deflashing operation is done

to remove top and bottom flash on the article. Caps are moulded on

injection moulded machine which can be procured from outside.


97

Edible oil Containers are manufactured as per IS : 10840 – 1994 and as

per customers’ requirement.



(b) Value (Rs.) : 2,40,00,000.00






fresh air.




11. FINANCIAL ASPECTS

A. FIXED CAPITAL

i) LAND & BUILDING Area sq. mtrs. Rate Rs. per Sq. mtr. (Rs.)

Land 330 500.00 1,65,000.00

Building 110 3500.00 3,85,000.00

------------- Total : 5,50,000.00

--------------


(a) Production Unit

98

1. Extrusion Blow Moulding Machine 1 20,00,000.00 - 15 ltr. Capacity with all accessories alongwith compressor and cooling tower

2. Scrap Grinder 1 75,000.00

3. Screen Printing Machine 1 15,000.00

(b) Testing Equipment & Other Accessories 2,00,000.00 (c) Electrification & Installation @ 10% of cost & machinery 2,29,000.00

(a) & (b)

(d) Pre-operative expenses 50,000.00 ---------------Total cost of machinery & equipment ( a to d ) 25,69,000.00 ---------------


(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 --------------- Total: 29,89,000.00 ---------------

Fixed Capital - (i) + (ii) = Rs. 5,50,000 + Rs. 29,89,000 = 35,39,000.00 ---------------

B. WORKING CAPITAL

i) Staff and Labour (Per month)


Production Engineer/Manager 1 10,000 .00 10,000.00

Sales Executive 1 5,000.00 5,000.00

Accountant-cum-Store Keeper 1 4,000.00 4,000.00

Clerk-cum-Typist 1 3,500.00 3,500.00

Watchman 2 3,000.00 6,000.00

Skilled Workers/Operator 3 3,500.00 10,500.00

Unskilled Workers 3 3,000.00 9,000.00 ------------ Total: 48,000.00

99

Add perquisite @ 10% of the Salary 4,800.00 ------------ Total: 52,800.00 ------------ Or say 53,000/- ii) Raw Material (Per month) Qty. (M.T.) Rate Rs./ M.T. (Rs.) HDPE Granules 20 75,000 15,00,000/-

iii) Utilities (per month): (Rs.) a) Power (60% utilisation of the total load x 80 KW x

500 hrs. x Rs. 5 per unit) 1,20,000/-

b) Water 2,000/- ----------- Total: 1,22,000/- -----------

iv) Other Contingent Expenses (Per month) (Rs.)

i) Repairs and Maintenance 4,000.00

j) Transportation Charges 15,000.00

k) Postage and stationery 1,000.00

l) Telephone/Fax/Computer 2,000.00

m) Consumable Stores 1,000.00

n) Advertisement & Publicity 2,000.00

o) Insurance 5,000.00

p) Miscellaneous Expenses 2,000.00 ------------ Total: 32,000.00 ------------

12. TOTAL WORKING CAPITAL ( Per month ) (Rs.)




iv) Other Contingent Exp. 32,000.00 ---------------

Total: 17, 07,000.00 ---------------

100

Working Capital for 3 months 51, 21,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital 35, 39,000.00

B. Working Capital for 3 months 51, 21,000.00

--------------- Total: 86, 60,000.00 --------------- 14. FIANCIAL ANALYSIS (Rs.)

A. Cost of Production (per year)

a) Total Recurring Cost 2, 04, 84,000.00

b) Depreciation on building @ 5% 19,250.00

c) Depreciation on machinery& equipment @ 10% 2, 56,900.00

d) Depreciation on Dies, Moulds & 84,000.00 Office equipment @ 20%

e) Interest on total Capital Investment @ 12% 10, 39,200.00

------------------ Total: 2, 18, 83,350.00

------------------ Or say 2, 18, 83,000.00

B. Sales/Turn over (per year) Item Qty.(MT) Rate (MT) (Rs.)

HDPE Edible Oil 240 1,00,000.00 2,40,00,000.00 Containers 15 ltrs. Capacity


Sales (Rs.) – Cost of Production (Rs.) = Profit (Rs.)

2,40,00,000 - 2,18,83,000 = 21,17,000.00

D. Net Profit Ratio = Net Profit x 100 Sales

101

= 21,17,000 x 100 2,40,00,000 = 8.82 %

E. Rate of Return = Net Profit x 100 Total Capital Investment = 21,17,000 x 100 86,60,000 = 24.4 %

21

F. Break-even Point


a) Depreciation on Building @ 5%

19,250.00

b) Depreciation on Machinery & Equipment @ 10%

2,56,900.00

c) Depreciation on Moulds/Dies&Office Equipment @ 20%

84,000.00


e) Interest on total capital investment

10,39,200.00

e) 40% of salary and wages

2,54,400.00

f) 40% of other contingent expenses

1,29,600.00

--------------- Total: 18,43,350.00

--------------------------

Or say Rs. 18,43,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit

102

= 18,43,000 x 100 18,43,000 + 21,17,000 = 18,43,000 x 100 39,60,000 = 46.50%

103

HDPE LAMINATED COLLAPSIBLE TUBES

1. INTRODUCTION

A typical Lamitube is a 5 layer structure with aluminium foil in the middle

layer and polyethylene as an inner and outer layer. The Aluminium foil

layer is bonded with polyethylene using adhesive/tie layer.

A lamitube is made using a 5-ply structure with overall thickness ranging

from 210 to 290 micron based on the final application. The film is

printed and slit to the required tube diameter generally ranging from

(22mm-35mm) and converted into a Sleeve by sealing online. The

Sleeve is then moved over a conveyor and goes to the molding station

where the Shoulder (HDPE) of the tube is formed. The tube now moves

over the conveyor and goes to the automatic capping machine where the

cap (PP) is fitted. The finished tube is packed to FMCG companies for

packaging.

Outer layer – The outer layer is 3 layer structure with PP in the middle

layer and inner outer is a LLD-LD blend.

Inner layer – is a critical layer as it is in contact with the end product and

is the sealing layer.

Lamitube are generally available in diameters ranging from 22 mm to 35

mm and tube lengths of 125 mm, 150 mm and 170 mm.

2. MARKET POTENTIAL

Lamitubes are widely used for packing of creams, tooth pastes, gels,

viscous, ointment etc. These lami tubes have totally replaced the

Aluminium Collapsible tubes. The demand for these product is increasing

in view of new facial cream and other type of creams being developed by

104

the Multi National Companies. In view of the increase in population, and

growing demand for creams, ointment etc., the demand will be

increasing 10 to 15% every year.


(i) The output capacity is taken as 100 Kgs/hr. The unit will work at

20 hrs. per day for 25 working days in a month and 300 days in a


and the cost of machinery may also vary from supplier to

supplier.


is six months



cent





place to place.



project



months



Week

105




5. TECHNICAL ASPECT MANUFACTURING PROCESS

1. The web material on receipt is slit into reels – the width being

equal to the length.

2. The slit reels can be printed upto 6 colours in reel form with

attractive designs. It is also possible to rotogravure print the web

and apply in LDPE overcoat to bury the print.

24

3. The printed web is fed onto tube making machine. This forms the

body of the tube and welds the injection-moulded shoulder in

place. This process must be done in an air conditioned room and

dust free production area.

4. The tube is then tapped for delivery to clients.

5. Filling and sealing-Conventional filling equipment used for filling

aluminium tubes can also be used for Lamitubes. However the

machines need to be modified by removal of the crimping station

which would have to be replaced by ultrasonic or high frequency

sealing and trimming/cooling station.


The Laminated Collapsible Tubes are manufactured as per customers’

specification


106


(b) Value (Rs.) : 5,70,00,000.00






fresh air.





A. FIXED CAPITAL i) LAND & BUILDING: Area sq. mtrs. Rate Rs. per Sq. mtr.

(Rs.) Land 300 500.00

1,50,000.00 Building 100 3500.00

3,50,000.00

--------------- Total :

5,00,000.00 ---------------

25


(a) Production Unit

i) Extrusion Blown Film Plant

26,00,000.00

107

ii) Extrusion Coating Plant 18,75,000.00

iii) Lamination Plant 18,00,000.00

iv) Printing Machine 15,00,000.00

v) Laminated Tube body making machine

10,00,000.00

vi) Solder Moulding Machine

1,00,000.00

vii) Tumble Mixer & Grinder

50,000.00

vii) Plastic Crusher

25,000.00

v) Filling & Sealing Machine

25,000.00

vi) Capping Machine 25,000.00

(b) Testing Equipment & Other Accessories 50,000.00

(c) Electrification & Installation @ 10% of cost & machinery 9,05,000.00 (a) & (b)

(d) Pre-operative expenses 50,000.00 ----------------- Total cost of machinery & equipment ( a to d ) 1,00,05,000.00 ----------------- (e) Cost of Moulds & Dies

1,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 1,04,05,000.00 -----------------

Fixed Capital - (i) + (ii) = 5,00,000.00 + 1,04,05,000.00 = 1,09,05,000.00

108

B. WORKING CAPITAL


Designation Nos. Salary (Rs.) (Rs.) _________________________________________________________________



Accountant-cum- Store Keeper 1 4,000.00

4,000.00

26

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00 ------------ 44,500.00

Add perquisite @ 10% of the Salary 4,450.00 ------------ Total: 48,950.00 ------------ Or Say Rs. 49,000.00 ii) Raw Material (Per Month) Qty. (M.T.) Rate/MT (Rs.)

(Rs.)

HDPE Granules 50 75,000

37,50,000.00


a) Power 1,50,000.00 (60% utilisation x 100 KW x 500 hrs. x Rs. 5 per unit)

b) Water 2,000.00

109

-------------- Total: 1,52,000.00 -------------- iv) Other Contingent Expenses (Per month) (Rs.)

q) Repairs and Maintenance

1,000.00

r) Transportation Charges 5,000.00

s) Postage and stationery 1,000.00

t) Telephone/Fax/Computer

2,000.00

u) Consumable Stores

1,000.00

v) Advertisement & Publicity

2,000.00

w) Insurance 4,000.00

x) Miscellaneous Expenses

2,000.00

------------ Total: 18,000.00



ii) Raw Material

37,50,000.00

27


110

iv) Other Contingent Exp. 18,000.00

---------------

Total: 39,69,000.00 --------------- Working Capital for 3 months 1,19,07,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital 1,09,05,000.00 B. Working Capital for 3 months 1,19,07,000.00 ------------------ Total: 2,28,12,000.00 ----------------- 14. FIANCIAL ANALYSIS


(a) Total Recurring Cost

4,76,28,000.00

(b) Depreciation on building @ 5%

17,500.00

(c) Depreciation on machinery& equipment @ 10%

10,00,500.00

(d) Depreciation on Dies, Moulds & 80,000.00 office equipment @ 20%

(f) Interest on total Capital Investment @ 12% 27,37,440.00

----------------- Total: 5,14,63,440.00

----------------- Or Say Rs. 5,14,63,000.00


111

HDPE Laminated 600 95,000 5,70,00,000.00 Collapsible Tubes


Sales(Rs) – Cost of Production (Rs.) = Profit

(Rs.)

5,70,00,000 - 5,14,63,000 = 55,37,000.00


= 55,37,000 x 100 = 9.71 % 5,70,00,000

28

E. Rate of Return = Net Profit x 100 Total Capital Investment = 55,37,000 x 100 = 24.27 % 2,28,12,000

F. Break-even Point



17,500.00


10,00,500.00

c) Depreciation on Moulds/Dies & Office Equipment @ 20%

80,000.00



27,37,440.00

112

f) 40% of salary and wages

2,35,200.00

g) 40% of other contingent expenses

67,200.00

---------------

Total: 41,85,840.00 ---------------

Or Say Rs. 41,86.000.00



113

HDPE LUBE OIL CONTAINER 5 LTR. CAP. 1. INTRODUCTION

HDPE Containers have emerged as the primary and dominant choice for

packaging of the lube oil due to its unique properties. HDPE containers

are preferred because of its light weight, good impact strength, ease to

handle during transportation, lower rejection as compared to tin

containers because of its superior resistance. HDPE Containers are made

first and printed later on, which has the advantage in terms of change

over of prints as compared to tin containers, where the sheet is first

printed and then fabricated into containers.

2. MARKET POTENTIAL

The consumption of lube oil is linked with the growth in the road

transport and level of industrial growth. The lube market has been

growing at the rate of 8% in the past. The future growth for lube oil is

expected to be between 8 to 12% per annum. The demand for HDPE

Blow Moulded articles in India is projected at 523 KT by 2010. India has

a market of 850 KTA of finished lubricating oil, valued at about Rs. 4,500

Crores, out of this, around 80% contributes to the automotive market.

The over all market is expected to grow at the rate of around 4% every

year due to the increase in automobiles in market. The entire market

was divided among seven players and 91% of the market was covered

by Govt. owned oil companies (IOC, HPCL, BPCL & IBP) and the

remaining 9% was shared by three private oil companies (Castrol, Gulf &

Tidewater). In the unorganised sector, it is estimated a market of

around 20 KTA, which are basically refineries. Due to the Liberalisation

Programme of the Government, various Transnational Oil Companies are

also likely to enter in the Indian market, like IOC – Mobile, BPCL – Shell,

IBP – Caltex and Tide Water – Mitsubishis.


114


hrs. per day for 25 working days in a month and 300 days in a year.

The output capacity may vary from machinery to machinery and the

cost of machinery may also vary from supplier to supplier.


is six months

30



cent





place to place.



project. 4. IMPLEMENTATION SCHEDULE


months



Week




115

5. TECHNICAL ASPECT MANUFACTURING PROCESS In a typical Extrusion Blow Moulding process, plastics granules are fed

into the hopper of the extruder. These granules travel to the extruder

barrel, whereby the granules are heated with the help of electric heaters

and homogenised by the screw in the barrel. The plasticized mass is

extruded into the tube called parison. The Parison is then inflated into a

mould of required form to contact and set up against the cooled walls of

the mould cavity. The following properties of the end product must be

ensured during manufacturing:

Uniform Wall thickness

Consistency in weight of moulded product

Uniform colour dispersion throughout article specified dimensional accuracy


The containers may be manufactured as per the standard specification

specified by the Oil Companies. The item can also be manufactured as

per IS 7394.

31



(b) Value (Rs.) : 1,50,00,000.00


Total connected load (HP/KW) : 55 KW


116



fresh air.




11. FINANCIAL ASPECTS

A. FIXED CAPITAL i) LAND & BUILDING Area sq. mtrs. Rate Rs. per Sq. mtr. (Rs.)

Land 120 500.00 60,000.00

Building 60. 3500.00 2,10,000.00

------------- Total : 2,70,000.00

--------------


(c) Production Unit 1. Extrusion Blow Moulding Machine 1 No. 10,00,000.00 - 5 ltr. Capacity with all accessories alongwith compressor and cooling tower

2. Scrap Grinder 1 No. 75,000.00 (d) Testing Equipment & Other Accessories

50,000.00


117

(d) Pre-operative expenses 50,000.00 --------------- Total cost of machinery & equipment ( a to d ) 12,88,000.00 --------------- (e) Cost of Moulds & Dies 75,000.00 (f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 --------------- Total: 16,63,000.00 --------------- Fixed Capital - (i) + (ii) = Rs. 2,70,000 + Rs. 16,63,000 = 19,33,000.00 ---------------

B. WORKING CAPITAL



_______


Accountant-cum-Store Keeper 1 4,000.00

4,000.00

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00

-----------

Total: 34,500.00

Add perquisite @ 10% of the Salary 3,450.00 ----------- Total: 37,950.00 -----------

118

Or say Rs. 38,000.00 ii) Raw Material (Per month) Qty. (M.T.) Rate Rs./ M.T. (Rs.) HDPE Granules 12.5 75,000 9,37,500.00


a) Power (60% utilisation of the total load x 55 KW x 500 hrs. x Rs. 5 per unit)

82,500.00

b) Water 500.00 ----------- Total: 83,000.00

33


y) Repairs and Maintenance

1,000.00

z) Transportation Charges 5,000.00

aa) Postage and stationery 1,000.00

bb) Telephone/Fax/Computer

2,000.00

cc) Consumable Stores

1,000.00

dd) Advertisement & Publicity

1,500.00

ee) Insurance 2,500.00

ff) Miscellaneous Expenses 1,000.00

------------- Total: 15,000.00

119

------------- 12. TOTAL WORKING CAPITAL ( Per month ) (Rs.)


ii) Raw Material

9,37,500.00

iii) Utilities 83,000.00


Total: 10,73,500.00 --------------- Or say

10,74,000.00

Working Capital for 3 months 32,22,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital

19,33,000.00 B. Working Capital for 3 months

32,22,000.00

--------------- Total: 51,55,000.00 --------------- 14. FIANCIAL ANALYSIS (Rs.)

A. Cost of Production (per year)

a) Total Recurring Cost

1,28,88,000.00

b) Depreciation on building @ 5%

10,500.00

c) Depreciation on machinery& equipment @ 10%

1,28,800.00

120

d) Depreciation on Dies, Moulds & office equipment @

20%75,000.00

e) Interest on total Capital Investment @ 12%

6,18,600.00

------------------ Total: 1,37,20,900.00

------------------ Or say 1,37,21,000.00

B. Sales/Turn over (per year) Item Qty.(MT) Rate (MT) (Rs.)

HDPE Lube Oil Containers 5 ltrs. Capacity 150 1,00,000 1,50,00,000.00


Sales (Rs.) – Cost of Production (Rs.) = Profit

(Rs.)

1,50,000 1,37,21,000 = 12,79,000


= 12,79,000 x 100 1,50,00,000 = 8.52 %

E. Rate of Return = Net Profit x 100 Total Capital Investment = 12,79,000 x 100 51,55,000 = 24.8 % F. Break-even Point



10,500.00

121


1,28,800.00


75,000.00



6,18,600.00


1,82,400.00

g) 40% of other contingent expenses 60,000.00 --------------- Total: 11,05,300.00

-------------------------

Or say Rs. 11,05,000.00

35



122

HDPE PIPES

1. INTRODUCTION

High Density Polyethylene (HDPE) Pipes are manufactured all over the

world by extrusion technique. Sizing methods still vary but the trend is

the pressure sizing i.e. introducing air at the pressure of about 0.8

kg/cm2 to 1 kg/cm2 through one of the spider legs of the dies. HDPE

Pipes are generally manufactured on single screw extruder.

HDPE Pipes find application in a variety of fields in India and abroad. The

most important applications are as follows:

- Drinking water supply line

- Water lines in hilly areas. Here the property of flexibility of HDPE

is exploited to the fullest extent

- Irrigation lines

- Industrial effluent disposal lines

- Sewage and gas lines

- Fuel gas line

- Mining Industry

2. MARKET POTENTIAL

There is a large market and very good scope envisaged for HDPE Pipes in

the near future. Though some units are already in the line, there is good

demand with the increase in housing/building activities spreading in rural

and urban areas. Number of Chemical and Petrochemical plants are also

being set up. Therefore, the demand for HDPE Pipes is also likely to rise.

One of the important applications is gas pipe line. It has advantage over

PVC pipe because it is unaffected even by temperature as high as 80

degree C and is inert to almost all chemicals. These pipes are also used

in the effluent treatment plants and line.

123



20 hrs. per day for 25 working days in a month and 300 days

in a year. The

output capacity may vary from machinery to machinery and the

cost of machinery may also vary from supplier to supplier.


is six months



cent





place to place.



project



months



Week


124



5. TECHNICAL ASPECT


HDPE granules are fed into the hopper of the extruder which goes into

the heated cylinder of the extruder, where the granules melt and are

conveyed (pumped) to the die exist. Now the melt passes through the

die and takes the shape of the die i.e. circular shape and emerges from

the exit of the die. It then passes through the calibrator and is forced to

tale the shape of the inside of the calibrator which is round in diameter

by the inside air pressure. This melt solidifies and taken round shape in

the calibrator, which is cooled by passing chilled water through it

continuously.

Now the solid pipe is taken out from the water and is drawn continuously

from the die. The speed is adjusted according to the thickness of the

pipe required and extruder out put. The pipes is either cut into 5 meters

length or wound on the winder unit. Generally pipes upto 110 mm

diameter can be made on this extruder.


HDPE Pipes for Potable Water Supply are manufactured as per IS: 8360


(a) Quantity (M.T.) : 600 kgs.

(b) Value (Rs.) : : 5,40,00,000.00



125




fresh air.





A. FIXED CAPITAL i) LAND & BUILDING: Area sq. mtrs. Rate Rs. per Sq. mtr. (Rs.)

Land 500 500.00 2,50,000.00

Building 300 3500.00 10,50,000.00

--------------- Total :

13,00,000.00 ---------------

ii) MACHINERY & EQUIPMENT: Sr. No. Description of machines Qty.(Nos.) (Rs.)

(a) Production Unit

i) Complete HDPE Pipe Plant (Monolayer Single 20,00,000.00

Screw Extruder)

ii) Cooling Tower

2,00,000.00

iii) Scrap Grinder 75,000.00

126

(b) Testing Equipment & Other Accessories

4,00,000.00


(d) Pre-operative expenses 50,000.00 ---------------

Total cost of machinery & equipment ( a to d ) 29,92,000.00 (e) Cost of Moulds & Dies 1,00,000.00 (f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 --------------- Total: 33,92,000.00 ---------------

Fixed Capital (i) + (ii) = 13,00,000 +33,92,000 = 46,92,000.00

B. WORKING CAPITAL






4,000.00

Watchman 2 3,000.00 6,000.00

Supervisor-cum-Chemist 1 5,000.00

5,000.00

127

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00

------------- 49,500.00 Add perquisite @ 10% of the Salary 14,950.00 ------------ Total: 64,450.00

Say Rs. 64,000.00 ------------ ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs. / M.T. (Rs.)

HDPE Granules 50 75,000 37,50,000.00


a) Power 1,35,000.00


b) Water 2,000.00 -------------- Total: 1,37,000.00 -------------- iv) Other Contingent Expenses (Per month) (Rs.)


1,000.00



d) Telephone/Fax/Computer

2,000.00

e) Consumable Stores

1,000.00

128

f) Advertisement & Publicity

2,000.00


h) Miscellaneous Expenses 1,000.00 ----------- Total: 30,000.00



ii) Raw Material

37,50,000.00


iv) Other Contingent Exp. 30,000.00 ----------------

Total: 39,81,000.00 ---------------

Working Capital for 3 months 1,19,43,000.00


A. Fixed Capital

46,92,000.00

B. Working Capital for 3 months 1,19,43,000.00 ----------------- Total: 1,66,35,000.00 ------------------- 14. FIANCIAL ANALYSIS :



4,77,72,000.00

129


52,500.00


2,99,200.00

(d) Depreciation on Dies & Moulds @ 20%

20,000.00

(e) Depreciation on office equipment @ 20%

60,000.00


----------------- Total: 5,01,99,900.00

Or Say Rs. 5,02,00,000.00


HDPE Pipes 600 90,000 5,40,00,000.00



(Rs.)

5,40,00,000 - 5,02,00,000 = 38,00,000.00


= 38,00,000 x 100 5,40,00,000 = 7.0 %

E. Rate of Return = Net Profit x 100 Total Capital Investment = 38,00,000 x 100 1,66,35,000 = 22.84 %

130

F. Break-even Point

Fixed Cost (Per Year)

Rs.


52,500.00


2,99,200.00


80,000.00



19,96,200.00


3,07,200.00


1,01,400.00

---------------

Total: 29,29,500.00 --------------- Or Say Rs. 29,30,000.00

------------------------- Net Profit (Per Year)


131

HDPE ROTO MOULDED TANKS

1. INTRODUCTION

Polyethylene water storage tanks are ideal for economic and hygienic

storage of potable water in residential buildings, industrial units,

business complexes, in fact any where and every where. These tanks

are moulded in one piece. Water storage tanks are without any seams,

joints or welds.

Because of their light weight, these tanks are easy to install and are

extremely mobile. They are very light for the volume of water stored. A

tank capable of storing 2000 litres of water weighs only 65 kgs. as

against 0.5 MT in case of M.S. tank and 2 MT in case of RCC tank of a

similar capacity. These tanks are rust proof and leak proof. Hence they

practically require little or no maintenance.

These tanks have double the life than that of RCC tanks and three to four

times than that of M.S. tanks. The temperature of water inside is

maintained for a considerable longer time than an M.S. tanks because

polyethylene is a bad conductor of heat.

2. MARKET POTENTIAL

Rotational moulding is new to the plastic industry because of its

importance as processing method. Though the art is an old one but

technological advancement during the last twenty years has caused

growth of several sizeable industries and is rapidly gaining interest on a

widespread basis.


132






is six months



cent





place to place.



project



months



Week




5. TECHNICAL ASPECT

133


Rotational Moulding is a process for producing hollow seamless

containers of all sizes and shapes. The process does not involve high

injection pressure or high shear rates. Black polyethylene powder of 35

mesh is weighed and charged in the mould. The mould is heated while it

is being rotated about two perpendicular axes. Simultaneously a porous

skin is formed on the mould surface which gradually melts as the heating

cycle progresses. At the end of heating cycle a layer of homogenous

uniform thick wall is formed. The mould then enters a cooling station

where forced air/water spray cools the mould. It is then positioned in a

work zone where the mould is opened, the tank is removed and the

mould is recharged for next cycle.


Rotational moulded Polythene water storage tanks can be manufacture

as per IS 12701-1989.

45


(a) Quantity (M.T.) : 420 M.T.

(b) Value (Rs.) : 3,99,00,000.00






fresh air.

134






Land 800 500 4,00,000.00

Building 500 3500 17,50,000.00 --------------- Total : 21,50,000.00 --------------------


(a) Production Unit

i) Rock-N-Roll Machine 19,00,000.00

Moulding Dies & Moulds – Cap. 70 Kg/hr.

ii) Scrap Grinder

75,000.00


1,25,000.00

46

(c) Electrification & Installation @ 10% of cost & machinery 2,10,000.00 (a) & (b) (d) Pre-operative expenses 50,000.00

135

Total cost of machinery & equipment ( a to d )

23,60,000.00

(e) Cost of Moulds & Dies

6,00,000.00


Fixed Capital = (i) + (ii) = 21,50,000 + 32,60,000 = 54,10,000.00

B. WORKING CAPITAL


Designation Nos. Salary (Rs.) (Rs.) ________ Production Engineer/Manager 1 10,000.00 10,000.00



4,000.00

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00 -----------

Total: 44,500.00

Add perquisite @ 10% of the Salary 4,450.00 ----------- Total: 45,000.00 ------------ ii) Raw Material (Per Month) Qty. (M.T) Rate Rs./MT (Rs.)

136

HDPE Granules 35 75,000 26,25,000.00




gg) Repairs and Maintenance

3,000.00

hh) Transportation Charges 5,000.00

ii) Postage and stationery 1,000.00

jj) Telephone/Fax/Computer

2,000.00

kk) Consumable Stores

1,000.00

ll) Advertisement & Publicity

2,000.00

mm) Insurance 5,000.00

nn) Miscellaneous Expenses 1,000.00

------------ Total: 20,000.00 ------------

12. TOTAL WORKING CAPITAL ( Per Month )


137

ii) Raw Material

26,25,000.00



Total: 28,00,000.00 --------------- Working Capital for 3 months 84,00.000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital


84,00,000.00

----------------- Total: 1,38,10,000.00 -----------------14. FIANCIAL ANALYSIS (Rs.)



3,36,00,000.00


87,500.00


2,36,000.00

(d) Depreciation on Dies, Moulds & office equipment @ 20%

1,80,000.00

(f) Interest on total Capital Investment @ 12% 16,57,200.00 -----------------

Total: 3,57,60,700.00 -----------------

48 Or Say Rs. 3,57,60,000.00


138

Item Qty.( MT) Rate (MT) Value (Rs.)

HDPE Rotomoulded Tanks 420 95,000 3,99,00,000.00



(Rs.)

3,99,00,000 - 3,57,60,000 = 41,40,000.00


Sales

= 41,40,000 x 100 = 10.37% 3,99,00,000


F. Break-even Point



87,500.00


2,36,000.00



e) Interest on total capital investment 16,57,200.00

f) 40% of salary and wages 2,16,000.00

139


--------------------------

Or Say Rs. 24,73,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 24,73,000 x 100 24,73,000 + 41,40,000 = 24.73.000 x 100 66,13,000 = 37.39%

140

HDPE/LLDPE SYNTHETIC PAPER

1. INTRODUCTION

Synthetic papers are ones, which couple the characteristics of plastics and paper.

Generally speaking, synthetic paper is obtained by processing synthetic polymers, as

the prime material, into paper like substrate intended for end uses. Typical synthetic

paper is the one, which has many of the visual and tactile properties of paper,

particularly those papers used for writing or printing applications or those used for bags

and wrappings.

Synthetic papers are such substrates which retain the plastic characteristics such as

non-tearability, water, weather, stain and termite resistance, excellent folding

endurance, good barrier to water vapour and gases, good printability and in certain

cases, heat sealability also. Additionally, these synthetic papers provide the benefits of

normal paper, viz. writability, printability, appearance, feel, whiteness, opacity etc.

The synthetic papers are versatile and generally can be scored, sheet, die-cut,

embossed, foil stamped, stitched, perforated, coated, laminated, etc. Its excellent

printability, optical, physical and thermal properties coupled with above stated

versatilities, render the synthetic papers, the right choice for specific value added

applications. They find use mainly for their novelty, durability and performance.

2. MARKET POTENTIAL

The demand for synthetic paper is increasing day by day in view of

making envelopes for despatch of magazines, books etc. Because of its

strength, good printability, weather resistance, synthetic

papers/envelopes are preferred. They are also used for making posters,

banners, sign boards etc.


(i) The output capacity is taken as 36 kgs./hr. The unit will work at 20 hrs. per

day for 25 working days in a month and 300 days in a year. The

141

output capacity may vary from machinery and the cost of machinery may also

vary from supplier to supplier.

(ii) The time period for achieving the full envisaged capacity utilisation is six

months.


(iv) The rate of interest for fixed and working capital is taken as 12

percent



(vii) The rate of land is taken @ Rs.500/- per sq.mtr. and construction

charges are taken @ Rs.3500 per sq.mtr. this may also vary from

place to place.



project.

(ix) 3% material loss has been considered for calculating raw material

requirement.



months



week




5. TECHNICAL ASPECT

142


1. Blown/Cast Films

Either monolayer or multilayer films are proruced out of this processing

Technique. Generally, polymers like LLDPE, HDPE, PS, HIPS and even

PVC are used to produce synthetic papers by this process. Fillers such as

calcium carbonate, titanium dioxide, silica, china clay, etc. are

used to render the polymers receptive to inks and coatings. In certain

cases, polymer blends/alloys are used to enhance the printability.

2. Monoaxial Orientation

In this process, a thick sheet either mono or multilayered is extruded

over a chill roll and then stretched 3-6 times in the machine direction.

Polymer mainly used in this process is polypropylene though HDPE

can also be used. Advantages of this process are that maximum

amount of fillers and pigments can be loaded. By certain unique

techniques, micro voids can also be incorporated into the bulk of the

film.

3. Monoaxial Orientation followed by Coating and Stretching

This combines two operations – orientation and coating. The basic

technology includes extruding a polymer containing fillers such as

clay, talc, barium sulphate, gypsum, zinc oxide into a thick sheet in

the machine direction to about 5-6 times. Over the monoaxially

oriented film, a blend of polymers, fillers and pigments is coated

either by calendering or extrusion on one or both surfaces. This step

may or may not be preceded by an anchor coat for better adhesion of

the coated layer onto the base layer. After coating, the coated

laminate is subjected to orientation in the transverse direction. Thus

143

the base layer is biaxially oriented while the surface layer is

monoaxially oriented.

Printable and physical properties of synthetic papers produced by this

process are excellent and also possess high tear initiation strength,

stiffness, good dimensional stability, less elongation. Optical

properties such as opacity, whiteness are also good. Disadvantages

are comparatively high production cost and limitation on minimum

possible thicknesses.

Other processes are Baxial Orientation, Coating, Cross Lamination etc.


The Synthetic Paper may be manufactured as per the standard specification specified by

the Customers.



(b) Value (Rs.) : 2,20,50,000.00




The unit does not create any pollution. However, a proper ventilation should be made

in the processing area for the better circulation of the fresh air.


144

Entrepreneurs may select energy efficient machinery and proper planning has also to

be made for saving energy in the unit.


A. FIXED CAPITAL

i) Land & Building: Area Sq.Mtrs. Rate per Sq.mtr.

Value (Rs.)

Land 500 300

1,55,000.00

Building 170 3500

5,95,000.00

--------------- Total: 7,45,000.00 ---------------


Sr.No. Description of machines Qty. (Nos.) Value

(Rs.)

(a) Production Unit

i) Extrusion Blown 16,00,000.00 Film Plant (45 mm)

ii) Cooling Tower 2,00,000.00

54

iii) Compressor 3,00,000.00

iv) Scrap Grinder 1,00,000.00


1,00,000.00

(c) Electrification & Installation @ 10% of cost & machinery (a) & (b)

1,70,000.00

145

(d) Pre-operative expenses

50,000.00 Total cost of machinery & equipment (a to d)

19,20,000.00

(e) Cost of Moulds & Dies 50,000.00

(d) Cost of Office Equipment/Furniture/Computers etc. 2,30,000.00

--------------- Total: 22,00,000.00 ---------------

Total Fixed Cost (I + II) = 7,45,000 + 22,00,000 =

29,45,000.00

WORKING CAPITAL

i) Staff and Labour (P.M.)

---------------------------------------------------------------------------- Designation Nos. Salary (Rs.) Total (Rs.) ----------------------------------------------------------------------------

Production Engineer/ 01 20,000.00 20,000.00 Manager

Sales Executive 02 10,000.00

20,000.00

Accountant 01 10,000.00

10,000.00

Store Keeper-cum-Clerk 01 8,000.00

8,000.00

Watchman 03 3,000.00

9,000.00

Supervisor 03 6,000.00

18,000.00

146

Skilled Workers 03 4,000.00

12,000.00

Unskilled Workers 06 3,000.00

18,000.00

Add perquisite @ 10% of the salary 11,500.00 -------------- Total: 1,26,500.00 -------------- Or Say Rs. 1,26,000.00 ii) Raw Material (P.M.) Qty.(Tons) Rate Rs./MT

(Rs.)

HDPE/LDPE Granules 18. 75,000

13,50,000.00

iii) Utilities (per month):

(Rs.)

i) Power 60,000.00 (60% utilization x 40 KW x 500 hrs. x Rs.5 per unit)

ii) Water 5,000.00 ----------- Total: 65,000.00 -----------

iv) Other Contingent Expenses (per month) (Rs.) a) Repairs and Maintenance

4,000.00


147



2,000.00


2,000.00


5,000.00


h) Miscellaneous Expenses 1,000.00 ------------ Total: 25,000.00 ------------

11. TOTAL WORKING CAPITAL (PER MONTH)

(Rs.)

i) Staff and Labour 1,26,000.00

ii) Raw Material

13,50,000.00


iv) Other Contingent Exp. 25,000

---------------- Total: 15,66,000.00 ---------------

Working Capital for 3 months 46,98,000.00

12. TOTAL CAPITAL INVESTMENT

A. Fixed Capital 29,45,000.00 B. Working Capital for 3 months 46,98,000.00 ---------------- Total: 76,43,000.00

148

13. FINANCIAL ANALYSIS



1,87,92,000.00


29,750.00

(c) Depreciation on machinery & equipment @ 10%

1,92,000.00


10,000.00


46,000.00

(e) Interest on total Capital Investment @ 12% 9,17,160.00 ------------------

Total: 1,99,86,910.00

------------------- Or Say Rs.: 1,99,87,000.00


Item Qty.(MT) Rate (MT) Value

(Rs.)

HDPE/LLDPE 210 1,05,000 2,20,50,000.00 Synthetic Paper C. Net Profit (per year) Sales (Rs.) - Cost of Production (Rs.) = Profit

(Rs.)

2, 20,50,000 - 1,99,87,000 = 20,63,000.00

149


= 20,63,000x 100 2,20,50,000 = 9.82% E. Rate of Return = Net Profit x 100 Total Capital Investment = 20,63,000 x 100 76,43,000 = 26.7%

F. Break-even Point



29,750.00


1,92,000.00

c) Depreciation on Moulds/Dies & Office 50,000.00 Equipment @ 20%



9,17,160.00


6,04,800.00

150


1,00,800.00

--------------- Total: 19,48,510.00 Or Say Rs. 19,49,000.00 Net Profit (Per Year) B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 19,49,000x 100 19,49,000 + 20,63,000 = 19,49,000x 100 40,12,000.00

= 48.6%

151

LLDPEAGRICULTURE FILM

1. INTRODUCTION

Mulching (Agriculture Film) is the practice of covering the soil around plants

to imrpove the growing conditions for the crop. Historically natural mulches

such as straw, compost, hay and wood chippings have been used but over

the last 40 years paper and plastics have been tried. Because of its poor

wet strength and price, paper has been found less effective and more costly

than plasitic. The result is that plastic mulch film is the primary choice for

agricultural application.

Plastic mulch film is widely used on high value crops, such as tomatoes,

melons, cucumbers, squash, peppers, strawberries and increasingly on

lower value crops such as corn and potatoes.

Benefits of Plastic Mulch Film

Covering the soil around the plant with plastic film results in the following

benefits:

- Moisture retention (particularly valuable in high temperature

regions with low rainfall).

- Weed reduction

- Increase in soil temperature

- Less crop contamination

- Less soil compaction

- Improved germination rates

These benefits lead to higher yields (by upto 100% for certain crops)

earlier crops(by upto one month) and in some cases the ability to grow

certain crop, which would not be possible without the mulch film.

152

Because of the reduction in weeds, herbicides can be eliminated or at

least reduce, which is of particular importance where legislative

constraints are being introduced. Pesticides may also be eliminated.

The lower soil compaction and greater fertility also allows for a reduction

in fertilizer.

2. MARKET POTENTIAL

To meet the growing needs of the farmers who wish continuously to improve the

profitability of their farming by using more efficient materials, the plastics industry has

introduced new products into the market..

In its early days, Plasticulture mainly were concerned with crop protection techniques

(greenhouses, low tunnels & mulch) or the preservation of food for livestock silage).

During the course of its evolution other techniques have appeared, always for the same

reason of profitability, producing more, at less cost with low investment while improving

the quality of the products.

The new techniques are -

- the direct cover of perforated polythylene in the 70’s.

- soil-less cultivation (or hydroponics), a long-known technique, the use of which

grew explosively in the 1960’s.

- energy screens, mainly used in glasshouses, a consequence of the oil crisis of

1974.

- Thick pond liner films

- use of stretch films for glass silage

- & more recently, animal housing

Coextrusion : This technique, which has been used for a long time in the packaging

sector, is being increasingly employed inn the agricultural sector, ever since new lines

enabling the extrusion of large-width, multilayer films were developed. Since then, the

converters have made large investments in the field, allowing the introduction onto the

market of new high performance films based on combinations of various differently

formulated materials.

153

The appearance of coextruded films has been of greatest interest for applications such

as greenhouse or silage films.

For silage, coextrusion has, in comparison with single layer films of the same thickness,

enabled products with higher performance with regard to mechanical & oxygen barrier

properties to be obtained, or equal performance with reduced thickness & at a lower

price.

An increasing demand of fresh products, the intensification of competition (and hence

the need to increase crop yields, quality & mechanisation), geographical expansion, the

need for independence in respect of climate conditions as well as the revalorisation of

the agricultural profession, all these are factors favouring a significant growth of

plasticulture in future years.

LDPE lining is suitable for lining of canals & reservoirs, both with soil or rigid cover.


(i) The output capacity is taken as 120 kgs./hr. The unit will work at 20 hrs. per

day for 25 working days in a month and 300 days in a year. The

output capacity may vary from machinery and the cost of machinery may also

vary from supplier to supplier.


is six months.



cent



(vii) The rate of land is taken @ Rs.500/- per sq.mtr. and construction

charges are taken @ Rs.3500 per sq.mtr. this may also vary from

place to place.



project.

154



months



week




5. TECHNICAL ASPECT


The manufacturing process used to manufacture LLDPE agricultural film is extrusion.

The film thickness range varies between 100-800 gauge and the layflat tubing width of

the film varies between 450 mm to 2100 mm (18” to 84”).

LLDPE granules are fed to a single screw extruder, where they are

melted & pumped out of a die in the form of a tube. This is then inflated

such that it takes a shape of a bubble. The bubble formed is collapsed &

drawn upwards by two nip rolls. Flattened tube is then wound on a

winder.


Agriculture Films are manufactured as per customers’ requirement.


(a) Quantity (M.T.) : 720 M.T.

(b) Value (Rs.) : 6,33,60,000/-


155



The unit does not create any pollution. However, a proper ventilation should be made

in the processing area for the better circulation of the fresh air.


Entrepreneurs may select energy efficient machinery and proper planning has also to

be made for saving energy in the unit.


A. FIXED CAPITAL

i) Land & Building: Area Sq.Mtrs. Rate per Sq.mtr.

Value (Rs.)

Land 500 500

2,50,000.00

Building 300 3500

10,50,000.00

--------------- Total: 13,00,000.00 ---------------


Sr.No. Description of machines Qty. (Nos.)

Value (Rs.)

(a) Production Unit

i) Extrusion Blown Film Plant (90 mm) 21,00,000.00 capacity 120 kgs./hour

156

ii) Cooling Tower

2,00,000.00 iii) Compressor

3,00,000.00


2,00,000.00

(c) Electrification & Installation @ 10% of 2,80,000.00

cost & machinery (a) & (b)

(d) Pre-operative expenses 1,20,000.00

--------------- Total cost of machinery & equipment (a to d) 32,00,000.00 ---------------


(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ---------------

Total: 36,00,000.00 ---------------

Fixed Capital = (i + ii) = (13,00,000 + 36,00,000) =

49,00,000.00

B. WORKING CAPITAL


---------------------------------------------------------------------------- Designation Nos. Salary (Rs.) Total (Rs.) --------------------------------------------------------------------

--------

Production Engineer/ 01 10,000.00 10,000.00 Manager

Sales Executive 03 5,000.00

5,000.00

157

Accountant-cum- 01 4,000.00 4,000.00 Store Keeper

Watchman 02 3,000.00

6,000.00

Skilled Workers 03 3,500.00

10,500.00

Helpers 03 3,000.00 9,000.00 ------------ 44,500.00

Add perquisite @ 10% of the salary 4,450.00 ------------ Total: 48,950.00

Or Say:

49,000.00

ii) Raw Material (P.M.) Qty.(Kg/Tons) Rate Rs./MT

Total(Rs.)

LLDPE Granules 60 MT 75000 45,00,000.00


i) Power 1,05,000.00 (60% utilisation x 70 KW x 500 hrs.xRs.5 per unit)

ii) Water 5,000.00 -------------- Total: 1,10,000.00 ------------

iv) Other Contingent Expenses (per month) (Rs.)


1,000.00

158




2,000.00


1,000.00


2,000.00

g) Insurance 3.000.00

h) Miscellaneous Expenses 2,000.00 ----------- Total: 15,000.00

11. TOTAL WORKING CAPITAL (PER MONTH)

(Rs.)


ii) Raw Material

45,00,000.00


iv) Other Contingent Exp. 15,000.00 --------------- Total: 46,74,000.00 --------------

Working Capital for 3 months 1,40,22,000.00


A. Fixed Capital

49,00,000.00

B. Working Capital for 3 months 1,40,22,000.00 ------------------

159

Total:

1,89,22,000.00

13. FINANCIAL ANALYSIS (Rs.)



5,60,88,000.00


52,500.00

(c) Depreciation on machinery & equipment @ 10%

3,20,000.00

(d) Depreciation on Dies & Moulds & Office 80,000.00

Equipment @ 20%

(e) Interest on total Capital Investment @ 12% 22,70,640.00 ------------------

Total: 5,88,11,140.00 ------------------ Or Say Rs.: 5,88,11,000.00


Item Qty.(MT) Rate (MT) Value

(Rs.)

LLDPE Agriculture Film 720 M.T. 88,000 6,33,60,000.00

C. Net Profit (per year) Sales - Cost of Production = Profit Rs.

Rs.6,33,60,000 - Rs.5,88,11,700 = 45,49,000 D. Net Profit Ratio = Net Profit x 100 Sales = 45,49,000 x 100 = 7.17% 6,33,60,000

160


F. Break-even Point



52,500.00


3,20,000.00

c) Depreciation on Moulds/Dies & Office 80,000.00 Equipment @ 20%



22,70,640.00


2,35,200.00


57,600.00

--------------- Total: 30,51,940.00 --------------- Or Say Rs. : 30,52,000.00

Net Profit (Per Year) B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 30,52,000 x 100

161

30,52,000 + 45,49,000 = 30,52,000 x 100 76,01,000 = 40.50%

162

LLDPE PRINTED SHOPPING/CARRY BAGS

1. INTRODUCTION

Shopping & Carrier bags have recently become an integral part of retail

selling in India. The advantage of these bags is not only the ease with

which product can be carried but also in avoiding unnecessary show of

items packed. A colourfully printed shopping bag is used for quite a long

time and is taken to variety of places. Thus it acts as an advertisement

media for the retail trade.

Carry bags are being used for local packaging of vegetables, groceries

and stationery etc. as well as for shopping and designer bags for large

departmental stores.

Blend ratios vary from 10-90% LLDPE in both HD/LLD as well as LD/LLD

blends, with thickness varying from 30 microns to 100 microns.

Bags produced are of various sizes, designs and colours depending on

the buyers need. Standard sizes being used are:

9” * 13”, 10” * 15”, 12” * 15”, 12” * 18”, 13” * 19”, 14” *

20”,

17” * 21”

The bags produced are of different sizes as well as shapes. Also various

types of handles, such as:

“Rasi” handle, Suitcase handle, Suitcase with grip type handle, Half

round lock type handle are used, ‘D’ punch handle

163

From single colour upto twelve colour printing is possible. Depending on

the quantity, rotogravure, flexo or screen printing process is used.

Advantages of LLDPE films –

1. Excellent draw-down ability makes possible to produce thinner

films

2. Very high tensile strength

3. Outstanding puncture resistance

4. Very high tear strength

5. Exceptional hot tack, sealability and resistance to ESCR.

2. MARKET POTENTIAL

There is good demand for shopping bags in view of opening of New Malls,

Garments Shops, Grocery Shops, General Stores, Vegetable Shops,

Sweet Shops etc. Depending upon the end products shopping bags of

small and big sizes are made with aesthetic appeal. Good quality printed

bags are also made for the customers especially for jewellery, cosmetics

etc. with bright and attractive works. Shopping bags/carry bags has

huge demand for all purpose which has replaced paper bags.







is six months


164


cent





place to place.



project



months



Week

Time required for acquiring the loan : Three months Machinery procurement, erection and commissioning



5. TECHNICAL ASPECT

MANUFACTURING PROCESS LLDPE or LD/LLDPE granules and colour are fed to an extruder, where

they are melted and extruded in the form of tube. This tube is inflated

into a bubble which is then collapsed to form a layflat film. The film is

then surface treated on a corona treater and then proceeded to a winder.

165

The film roll is brought to a four colour flexo machine, where it is printed

using rubber rolls.

The printed film is then converted into bags using a bottom or side seal

bag making machine. The required handle is then attached to the bag.



specified by the Oil Companies.


(a) Quantity (M.T.) : 2,100

(b) Value (Rs.) : 18,90,00,000.00






fresh air.





A. FIXED CAPITAL

166

i) LAND & BUILDING: Area sq. mtrs. Rate Rs. per Sq. mtr. (Rs.)

Land 500 500 2,50,000.00

Building 300 3500 10,50,000.00

--------------- Total : 13,00,000.00 ---------------


(a) Production Unit

i) Extrusion Blow Film Plant 01

1,95,00,000.00

ii) Printing machine 75,00,000.00

iii) Bag making machine 03

25,00,000.00

iv) Scrap Grinder 01

1,00,000.00

v) Cooling Tower 01

1,00,000.00

vi) Compressor 01

2,50,000.00

(b) Testing Equipment & Other Accessories 50,000.00


(d) Pre-operative expenses 1,00,000.00 ------------------ Total cost of machinery & equipment ( a to d ) 3,31,00,000.00 ------------------

167

(e) Cost of Moulds & Dies & Mini Expesnes

1,00,000.00


Fixed Capital (i) + (ii) = 13,00,000 + 3,35,00,000 = 3,48,00,000.00

B. WORKING CAPITAL




Sales Executive 01 5,000.00 5,000.00


4,000.00

Watchman 02 3,000.00 6,000.00

Skilled Workers 03 3,500.00 10,500.00

Helpers 03 3,000.00 9,000.00 ------------ 44,500.00

Add perquisite @ 10% of the Salary

4,450.00

------------ Total: 48,950.00 ------------ Or Say Rs. 49,000.00 ------------

168

ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./MT (Rs.)

LLDPE Granules 175 75,000 1,31,25,000.00


a) Power (60% utilisation x 215 KW x 500 hrs. x Rs. 5 per unit)

3,22,500.00


oo) Repairs and Maintenance

1,000.00

pp) Transportation Charges 5,000.00



2,000.00

Consumable Stores 1,000.00

Advertisement & Publicity 2,000.00

Insurance

5,000.00

Miscellaneous Expenses 1,000.00

------------ Total: 18,000.00 ------------

169

12. TOTAL WORKING CAPITAL ( Per Month ) (Rs.)


ii) Raw Material

1,31,25,000.00


iv) Other Contingent Exp. 18,000.00 -----------------

Total: 1,35,17,000.00 -----------------

Working Capital for 3 months 4,05,51,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital

3,48,00,000.00 B. Working Capital for 3 months

4,05,51,000.00

----------------- Total: 7,53,51,000.00 ----------------- Or Say Rs. 7,53,51,000.00 14. FIANCIAL ANALYSIS (Rs.)



16,22,04,000.00


52,500.00 (c) Depreciation on machinery& equipment @ 10%

33,10,000.00

(d) Depreciation on Dies, Moulds & office equipment @ 20%

80,000.00


-------------------

170

Total: 17,46,88,620.00 ------------------- Or say Rs. 17,46,89,000.00


Item Qty.( MT) Rate (MT) Value (Rs.) LLDPE Printed Carry Bags 2,100 90,000 18,90,00,000.00



(Rs.)

18,90,00,000 - 17,46,89,000 =

1,43,11,000.00


Sales

= 1,43,11,000 x 100 = 7.57% 18,90,00,000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 1,43,11,000 x 100 = 18.9% 7,53,51,000

F. Break-even Point



52,500.00


33,10,000.00

171


80,000.00



90,42,120.00


2,35,200.00

g) 40% of other contingent expenses 62,400.00 ----------------- Total: 1,28,42,220.00 ----------------- Or Say Rs. 1,28,42,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 1,28,42,000 x 100 1,28,42,000 + 1,43,11,000 = 1,28,42,000 x 100 = 47.29% 2,71,53,000

11. LLDPE STRETCH & CLING FILM

1. INTRODUCTION

Stretch film entered the world market in the early 1970’s mainly as a

replacement for shrink film used in packaging of glass bottles. Stretch

cling wrapping is a process in which a pre-extruded tacky film is wrapped

around any product such as bundle, roll, pallet load etc. of any shape

and size to impart a firm grip to the package. The tacky characteristics

of the film help in self adhesion of the film without any external aids.

172

Stretch film wrapping is one of the most economic modes of packaging.

Stretch cling film wrapping protects the product against the environment

and makes it convenient for handling, storage and shipping.

Although stretch cling film is costlier to shrink wrap film, the quantity of

stretch cling used is roughly one-fourth.

Products can be wrapped in two forms:

(a) Small Packs/Bundles

Majority of food items, particularly fresh vegetables, fruits, sandwiches,

are stretch wrapped in small packs.

(b) Pallets

Stretch cling film is mostly used for palletization. The products are

initially packed in their primary packing and put into either cartons or

cardboard trays which are then palletized together in

stretch wrap.

Stretch film is primarily used as a means of secondary packaging and

can substitute the use of wooden crates and corrugated cartons. The

entire wooden crate and corrugated cartons are replaced with a tray

either made of wood or cardboard which is used as a base on which the

packed goods are stacked and stretch wrapped cutting down on the cost

tremendously.

2. MARKET POTENTIAL

The demand for LLDPE Stretch & Cling film is growing at a very rapid

pace due to the wide range of applications. This film is soon replacing

Aluminium foil in hotel industry and in airlines. The cling properties of

173

this film has an edge over the conventional materials like Aluminium foil.

In hotel industry LLDPE Stretch & Cling film rolls of 1 ft length and 12

inch diameter & 30 mts long(weight) are normally used. This film is

mainly gaining importance in exports of garments, soft drinks, pulps,

concentrates, jams etc.

Each item exported needs a very good packaging material and LLDPE

Stretch & Cling film due to its high strength and stretch ability (max.

upto 500% max. and 300% min.) is the most ideal material. Garments

that are packed in cartons are now stretch wrapped. Another application

is mineral water bottles, soft drinks, oil etc. which are packed in cartons

and stretch wrapped. Food products, books, house hold items etc. are

now being packed/wrapped and the demand is growing fast.

Another major application is in picture tubes of television sets.

The demand of LLDPE Stretch & Cling film in the country in 2004-05 is

about 5000-6000 TPA. This is expected to grow at around 20% CARG.







is six months



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174



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5. TECHNICAL ASPECT


The various factors to be taken into consideration for production of

quality stretch film using a conventional monolayer blown film extruder

with indigenous raw material inputs. Though a three layer stretch film

gives best results for industrial

wrappings using 300% stretch, there is a vast market (like Household

Wrapping, Food Wrapping, Industrial hand wrapping of pallets etc.)

where monolayer stretch film serves the purpose very well. In fact, in

abroad also, 40-50% of stretch films are manufactured on monolayer

machines.

175

A) Machinery

- 100% LLDPE Extruder with L/D ratio 24:1 and above.

- Either monolayer or three layer two layer extruder gives

mixed results in proper development of cling effect.

- Aerodynamic cooling ring for good bubble stability at thin

gauges and good clarity.

- Uniform Gauge Control Across the die.

- Rotating Die preferable for good finish of the roll and better

M.D. Tear strength.

- Addition of polymer processing aid necessary if an LDPE

extruder has to be used. Using LDPE extruder with PPA will

give slightly better overall mechanical properties of the film.

B) Accessories

- Banana roll/Spread roll for removing wrinkles

- Good side trimming facility with surface winders for proper

winding of the film. Regular changing of trimming blades

necessary since LLDPE is more abrasive than other materials.

- Since on line slitting rewinding is quite difficult while using

non slip grades, use of a separate slitter rewinder always

gives much better finish of the roll and reduces trimming

wastage. Also it is possible to take out maximum width lay

flat tubing and slit it into any number of different width rolls

as per the order.

C) Raw Material

- Use 1 MI LLDPE film grade for industrial film (20-30 mic)

- Use 2 MI LLDPE film grade for household/food wrapping

applications (12-15 mic film).

- Blend 10% general purpose film grade LDPE ( 3 – 7 mi) for

better clarity.

176

- Otherwise blend 10% slurry HDPE film grades for better

tensile and clarity (Blend of low percentage of HDPE have

been found to improve the clarity of LLDPE film).

- Use PIB master batch from a good source. Otherwise the

film may be more sticky but less tacky. Also more loading %

may increase the cost.

- Optimum level of Addition of PIB is 6 – 8%. This may have

to be altered if the master batch contains less PIB than

declared. But otherwise, adding more or less PIB will both

give problems in quality of film.

- Fractional MI/LLD based on higher Alpha olefins may be used

for special purpose stretch film requiring better mechanicals

and higher stretch.

PROCESSING

- Good blow up ratio to have a good residual M/D Elongation

- In case of sticky master batch granules, slow feeding of

material to the hopper or mixing of some anti-blocking

material like Talc is required.

- Lower temp in compression/mixing zone for good dispersion.

Higher temperature in die and die lip for development of

good cling property.

- More loading of PIB will make the film very sticky and

stacked pallets may stick to one another.

- It is easy to produce one side tacky film in 3 layer plant by

using slip modified grade in inner layer, non slip LLD with

10% HD in middle layer and non slip LLD with PIB master

batch in the outer layer.

177

- In monolayer film also it is possible to produce one side tacky

film by giving corona treatment. The side where corona

treatment is given, will not develop tackiness.

- Always check for moisture in the material and the master

batch. Pre-drying of material and master batch to about 80

Deg. C will give better results.


As per customers’ specification.



(b) Value (Rs.) : 8,28,00,000.00






fresh air.






178

Land 500 500 2,50,000.00

Building 300 3500 10,50,000.00

--------------- Total : 13,00,000.00 ---------------

ii) MACHINERY & EQUIPMENT:

Sr. No. Description of machines Qty.(Nos.) (Rs.)

(e) Production Unit

i) Three layer Extrusion Blown Film Plant 58,00,000.00 having capacity 150 kg//hr.

ii) Compressor 3,00,000.00

iii) Cooling Tower

1,00,000.00

iv) Scrap Grinder

1,00,000.00

(c) Testing Equipment & Other Accessories

2,00,000.00


(d) Pre-operative expenses 50,000.00 --------------- Total cost of machinery & equipment ( a to d ) 72,00,000.00 --------------- (e) Cost of Moulds & Dies

2,00,000.00


179

Fixed Capital = (i) + (ii) = 13,00,000 + 77,00,000 = 90,00,000.00

B. WORKING CAPITAL






5,000.00

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00 ------------ 45,500.00

Add perquisite @ 10% of the Salary 4,550.00 ------------ Total: 50,050.00 ------------- Or Say Rs. 50,000.00 ii) Raw Material (Per Month) Qty. (Tones) Rate Rs./MT (Rs.)

LLDP Granules 75 75,000.00 56,25,000.00



180



2,000.00




2,000.00


5,000.00


2,000.00



----------- Total: 28,000.00 -----------



ii) Raw Material

56,25,000.00


iv) Other Contingent Exp. 28,000.00 ----------

-----

181

Total: 60,20,000.00 ----------------- Working Capital for 3 months 1,80,60,000,00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital

90.00,000.00 B. Working Capital for 3 months

1,80,60,000.00

----------------- Total: 2,70,60,000.00 ----------------- 14. FIANCIAL ANALYSIS (Rs.)



7,22,40,000.00


52,500.00


7,20,000.00

(d) Depreciation on Dies Moulds & office equipment 1,00,000.00 @ 20%


----------------- Total: 7,63,59,700.00

----------------- Or Say Rs. 7,63,60,000.00


182

LLDP Stretch Cling Film 900 92,000 8,28,00,000.00



(Rs.)

8,28,00,000 - 7,63,60,000 = 64,40,000.00


= 64,40,000 x 100 = 7.77%

8,28,00,000


F. Break-even Point



52,500.00


7,20,000.00




32,47,200.00


2,40,000.00

183


--------------

Or Say Rs. 45,66,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 45,66,000 x 100 45,66,000 + 64,40,000 = 45,66,000 x 100 = 41.48 % 1,10,06,000

LLDPE ZIPPER BAG

1. INTRODUCTION

PE Zipper bags were introduced in Europe in the ‘70s called ‘minigrip’

and a patent covered in all countries protected its production. With the

expiry of patent, there are now several manufacturers in South East Asia

offering plants of outputs varying from 5 kg/hr. to 30 kg/hr. for assorted

size bags in 40 to 50 micro thickness.

The zipper bags also referred to as magic seal bags have a projection

and insertion profile at the top and side sealed on one end,. The red or

any other coloured streak line provides identification particularly to

distinguish product and sizes of items packed. The zipper bags can be

reused several times and protect the items from ingress of moisture, gas

and entry by insects.

184

2. MARKET POTENTIAL The market for zipper bags remains untapped as very few manufacturers

are in the business. Zipper bags are used in households and also for

packing of food products. The industry also utilize zipper bags for

sampling granules of powder products inclusive of colorants, chemicals,

cosmetic products, hardware items and medical products.







is six months



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83



place to place.



project


185


months



Week





LLDPE or LD/LLDPE granules and colour are fed to an extruder, where

they are melted and extruded in the form of tube. This tube is inflated

into a bubble which is then collapsed to form a layflat film. Zipper is

formed at the time of extrusion stage. Special Zipper closing unit is

provided on the take up of frame. The film is then surface treated on a

corona treater and then proceeded to a winder. The film roll is brought

to a four colour flexo machine, where it is printed using rubber rolls.

The printed film is then converted into bags using a bottom or side seal

bag making machine.


The Zipper Bangs are manufactured as per customers’ specification.



(b) Value (Rs.) : 1,89,00,000.00


186





fresh air.






Land 200 330 66,000.00

Building 110 3500 3,85,000.00

--------------- Total : 4,51,000.00 ---------------


(a) Production Unit

i) Extrusion Line

22,00,000.00

ii) Extruder for making Red Line 20,00,000.00

iii) Bag making machine

5,00,000.00

187

iv) Auto Film width Controller

2,00,000.00


1,00,000.00


(d) Pre-operative expenses 1,00,000.00 --------------- Total cost of machinery & equipment ( a to d ) 56,00,000.00

(e) Cost of Moulds & Dies L.S. 1,00,000.00 (f) Cost of Office Equipment/Furniture/Computers etc. L.S. 3,00,000.00 --------------- Total: 60,00,000.00 ---------------

Total Fixed Cost (i) + (ii) = 4,51,000 + 60,00,000 = 64,51,000.00

B. WORKING CAPITAL



Sales Executive 01 10,000.00 10,000.00

Accountant 01 5,000.00 5,000.00


7,000.00

Supervisor 02 8,000.00 16,000.00

188

Skilled Workers 03 5,000.00 15,000.00


21,000.00

Watchman 03 3,500.00 10,500.00 ----------- 84,500.00

Add perquisite @ 10% of the Salary 8,450.00 -------------- Total: 93,950.00 Or Say Rs. 94,000.00 --------------

ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./MT (Rs.)

LLDPE 15 65000 9,75,000.00


a) Power 87,000.00 (60% efficiency x 58 KW x 500 hrs. x Rs. 5 per unit)

b) Water 1,000.00

------------ Total: 88,000.00 ----------- iv) Other Contingent Expenses (Per month) (Rs.)

qq) Repairs and Maintenance

3,000.00

rr) Transportation Charges 6,000.00

ss) Postage and stationery 2,000.00

tt) Telephone/Fax/Computer

2,000.00

189

uu) Consumable Stores

2,000.00

vv) Advertisement & Publicity

3,000.00

ww) Insurance 7,000.00

xx) Miscellaneous Expenses 3,000.00

----------- Total: 28,000.00 -----------



ii) Raw Material

9,75,000.00



Total: 11,85,000.00 --------------- Say Rs. 11,85,000.00 Working Capital for 3 months 35,55,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital


35,55,000.00

----------------- Total: 1,06,06,000.00 ---------------- 14. FIANCIAL ANALYSIS (Rs.)


190


1,42,20,000.00


19,250.00


5,60,000.00


20,000.00


60,000.00


----------------- Total: 1,60,80,690.00

87 Say Rs. 1,60,80,000.00

B. Sales/Turn over (per year) Item Qty.( MT) Rate (MT)(Rs.) Value (Rs.)

LLDPE Zipper Bag 180 1,05,000.00 1,89,00,000.00



(Rs.)

1,89,00,000 - 1,60,80,000 = 28,20,000.00


= 28,20,000 x 100 = 14.9% 1,89,00,000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 28,20,000 x 100 = 28.18%

191

1,00,06,000 F. Break-even Point



19,250.00


5,60,000.00


80,000.00



12,01,440.00


4,51,200.00


Or Say Rs. 24,92,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 24,92,000 x 100 24,92,000 + 28,20,000 = 24,92,000 x 100 = 46.9% 53,12,000

192

P.P.AIR THIGHT CONTAINERS

1. INTRODUCTION

Household containers with tight fitting lids are produced from HDPE or PP resins by the

process of injection moulding. They are made in different shapes and sizes for packing

of food and non-food products. In fact, their end use applications are unlimited. The

desirable characteristics are lead proofness and preventing air entry into the container

through the lid recess. This helps to provide extended shelf-life to the food products,

which are stored and also, prevent entry of insects.

With the vibrant middle income class in India, the market for consumer goods and

consumer durables has registered high growth in the recent past. There has been

preference for replacement of sheet metal, die cast aluminum, and wood, tin,

glass/porcelain and other conventional materials by injection moulded plastic products.

PP airtight containers are used for storing a wide variety of food products including

confectionery, biscuits, dry fruit, breakfast cereals and spice cartons.

2. MARKET POTENTIAL

The Plastics ware sector constitutes 20% of PP consumption in injection moulded

Sector. In 2004 Polypropylene consumption in Houseware & Thermoware was 99 KT

and is expected to reach 180 KT by 2010-11.







is six months


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Screw preplasticiser type (in line or out of line)

For moulding of PP items, it is preferred to use a screw preplasticised system (in line).

The material is fed to the machine through a hopper. The barrel of the machine is

heated with temperature setting required to melt the material. The material is injected

into the mould halves by the forward movement of the screws into the cavity. The

mould is cooled by the passage of cooling water to freeze the molten material.

194

The pressure of the screw is held for some time and then it retracts by screw rotation.

At the end of the moulding and cooling cycle the mould halves open and the moulded

item is extracted manually or automatically. Thus the entire moulding cycle comprising

injection pressure, cooling and the idle time for extracting the mould is completed.



specified by the customers or as per IS : 10171



(b) Value (Rs.) : 4,62,00,000.00






fresh air.






195

Land 300 300 90,000.00

Building 170 3500 5,95,000.00

--------------- Total :

6,85,000.00 ---------------



(a) Production Unit

1) Injection Moulding m/c. 130 T 4

86,00,000.00

2) Scrap Grinder

1,00,000.00

3) Cooling Tower

2,00,000.00


--------------- 90,00,000.00

(c) Electrification & Installation @ 10% of cost & machinery 9,00,000.00 (a) & (b) (d) Pre-operative expenses 1,00,000.00 Total cost of machinery & equipment ( a to d ) 1,00,00.000.00 (e) Cost of Moulds & Dies 4,00,000.00 (f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 1,07,00.000.00

196

----------------- TOTAL FIXED CAPITAL (i) + (ii) 1,13,85,000.00

B. WORKING CAPITAL




Sales Executive 02 10,000.00 20,000.00

Accountant 01 10,000.00 10,000.00


8,000.00

Watchman 03 4,000.00 12,000.00

Supervisor 03 5,800.00 17,400.00

Skilled Workers 12 5,000.00 60,000.00

Unskilled Workers 12 4,000.00 48,000.00 --------------- 1,95,400.00

Add perquisite @ 10% of the Salary 19,540.00 -------------- Total: 2,14,940.00 -------------- Or Say Rs. 2,15,000.00 ii) Raw Material (Per Month) Qty. (MT) Rate Rs./MT (Rs.)

197

a) Polypropylene 35 75,000

26,25,038.00

b) Colour 15,000.00 ---------------

26,40,000.00 ---------------


a) Power 2,55,000.00 (60% of efficiency x 170 KW 500 hrs. x Rs. 5 per unit)


yy) Repairs and Maintenance

3,000.00

zz) Transportation Charges 5,000.00

aaa) Postage and stationery 2,000.00


2,000.00


2,000.00


4,000.00



----------- Total: 30,000.00 -----------

198


i) Staff and Labour 2.15.000.00

ii) Raw Material

26,40,000.00


iv) Other Contingent Exp. 30,000.00

---------------

Total: 31,42,000.00 ---------------

Working Capital for 3 months 94,26,000.00


A. Fixed Capital

1,13,85,000.00

B. Working Capital for 3 months 94,26,000.00 ----------------- Total: 2,08,11,000.00 ----------------- 14. FIANCIAL ANALYSIS



3,77,04,000.00


29,750.00


10,00,000.00

199


80,000.00


60,000.00


------------------ Total: 4,13,71.070.00

------------------ Or Say Rs. 4,13,71,000.00


PP Air Tight Container 420 1,10,500 4,62,00,000.00



(Rs.)

4,62,00,000 - 4,13,71,000 = 48,29,000.00


= 48,29,000 x 100 = 10.45 % 4,62,00,000.00

E. Rate of Return = Net Profit x 100 Total Capital Investment = 48,29,000 x 100 = 23.20 % 2,08,11,000.00

F. Break-even Point


200


29,750.00


10,00,000.00




24,97,320.00


10,32,000.00


96,000.00

--------------- Total: 50,55,070.00

----------------

Or Say Rs. 50,55,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 50,55,000_ x 100 50,55,000 + 48,29,000 = 50,55,000 X 100 98,84,000 = 51.14 %

201

PP DISPOSABLE SYRINGES

1. INTRODUCTION

Plastics are finding greater use in medical disposables and replacing

conventional materials like metals and glass. One such application which

has been established in the country is the use of disposable syringes

produced from polypropylene resin by the process of injection moulding.

The components include the plunger, main body which is graduated to

indicate capacity, gasket, needle holder and the sheath cover for the

needle.

The individual syringes are over wrapped in a polyethylene film pouch for

subsequent sterilization by ethylene oxide/gamma radiation.

PP injection moulded syringes are available in sizes of 1 ml, 2 ml, 5 ml,

and 10 ml, & also higher sizes in a variety of designs.

Due to its availability in sterilized condition, cost economics and ready to

use form, disposable syringes are replacing glass syringes due to

advantages such as crack resistance and safety from damage in transit.

The PP disposable syringes are having many advantages over

conventional glass syringes such as light weight, Crack resistant, Leak

proof, Disposable, Eco friendly, Sterilisable, See through clarity etc.

2. MARKET POTENTIAL

The advent of AIDS, serum Hepatitis and other dreaded infectious

diseases have added now dimension and this let to rapid increased use of

disposable syringes in developing countries. Use of disposable syringes is

fast catching in India also and therefore offers good scope. In view of

202

this, the new units will not face any problems in marketing their product

in future.




year. The out-

put capacity may vary from machinery to machinery and the cost

of machinery may also vary from supplier to supplier.


is six months



cent





place to place.



project



months



Week

Time required for acquiring the loan

203

Machinery procurement, erection and commissioning : Three months



5. TECHNICAL ASPECT


To manufacture plastic syringes, the machinery required will be injection

moulding machines, set of Multicavity moulds and sterilization chamber.

Polypropylene granules are fed into an injection-moulding machine,

where they are plasticized and then injected into a Multicavity mould.

The mould is held under pressure and material is cooled, the product is

then ejected.

PP syringes are made of :

(a) Barrel

(b) Plunger

(c) Gasket

(d) Protector

(e) Hub

Barrel and Plunger are made of PP by injection moulding whereas Gasket

is made separately.

Syringes produced are packed and then sterilized using Gamma

Radiation or Ethylene oxide. This project considers sterilization by

Ethylene Oxide.


204

For starting unit for the manufacturing disposable syringe, drug licence is

essential and are manufactured according to Drug Control Act.


(a) Quantity (Lakh) : 5 ml – 150 lakhs 2 ml - 75 lakhs

(b) Value (Rs.) : 3,45,00,000.00






fresh air.






Land 760 300 2,28,000.00

Building 380 3500 13,30,000.00

--------------- Total :

15,58,000.00 ---------------


205


(a) Production Unit

1) Injection Moulding M/c. 125 T 01

20,25,000.00

2) Sterilisation Plant and Assembling Line 01

1,00,00,000.00

3) Clean Room Air System 01 20,00,000.00


1,25,000.00


(d) Pre-operative expenses

1,00,000.00


1,56,65,000.00

(e) Cost of Moulds & Dies & Misc. items

2,00,000.00


Total Fixed Cost = (i) + (ii) = 15,58,000 + 1,61,65,000 = 1,77,23,000.00

B. WORKING CAPITAL



206


Sales Executive 02 10,000,00 20,000.00

99

Accountant 01 10,000,00 10,000.00


8,000.00

Watchman 03 4,000.00 12,000.00

Supervisor 03 6,000.00 18,000.00

Skilled Workers 18 5,000.00 90,000.00

Unskilled Workers 25 4,000.00 1,00,000.00 ---------------

2,78,000.00

Add perquisite @ 10% of the Salary 27,800.00 -------------- Total: 3,05,000.00 -------------- Or Say Rs. 3,05,000.00 ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./MT (Rs.)

Polypropylene 15 75,000.00

11,25,000.00

Ethylene Oxide Gas, Needles & Packaging Material 2,75,000.00 --------------- Total: 14,00,000.00


a) Power 3,22,500.00 (60% efficiency x 215 KW x 500 hrs. x Rs. 5 per unit)

207

b) Water 2,500.00 -------------- Total: 3,25,000.00 --------------


bbb) Repairs and Maintenance

10,000.00

ccc) Transportation Charges 5,000.00

ddd) Postage and stationery 2,000.00

eee) Telephone/Fax/Computer

3,000.00

fff) Consumable Stores

5,000.00

ggg) Advertisement & Publicity

5,000.00

hhh) Insurance 10,000.00

iii) Miscellaneous Expenses 3,000.00

----------- Total: 43,000.00 -----------

100 12. TOTAL WORKING CAPITAL ( Per Month )


ii) Raw Material

14,00,000.00



Total: 20,73,000.00

208

--------------- Working Capital for 3 months 62,19,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital

1,77,23,000.00

B. Working Capital for 3 months 62,19,000.00 ----------------- Total: 2,39,42,000.00 ----------------- 14. FIANCIAL ANALYSIS (Rs.)



2,48,76,000.00


66,500.00


15,66,500.00


40,000.00


60,000.00


----------------- Total: 2,94,82,040.00 ----------------- Or say Rs. 2,94,82,000.00 B. Sales/Turn over (per year) Item Qty.(Lakhs) Rate (Rs.) Value (Rs.)

Disposable Syringes 5 ml 150 1.80

2,70,00,000.00

209

Disposable Syringes 2 ml 75 1.00 75,00,000.00 ----------------- Total: 3,45,00,000.00



(Rs.)

345,00,000 - 2,94,82,000 = 50,18,000.00


= 50,18,000 x 100 = 13.18 3,75,00,000

E. Rate of Return = 50,18,000 x 100 Total Capital Investment

= 50,18,000 x 100 = 20.95 % 2,39,42,000 F. Break-even Point



66,500.00


15,66,500.00




28,73,040.00


14,64,000.00

210

g) 40% of other contingent expenses 1,85,400.00 --------------- Total: 63,48,440.00

---------------

Or Say Rs. 63,48,000.00

B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 63,48,000 x 100 63,48,000 + 50,18,000 = 53,48,000 x 100 1,13,66,000 = 55.85 %

211

P.P. FILES & FOLDER

1. INTRODUCTION

The advantages of PP files & folders are as follows: Recycle, Soft, hence convenient to use, available in various colours,, long

lasting, Eco-friendly, more durable, available in different colours,

different finishes, elegant and moisture proof.

A PP file & folder is aesthetically better which befits the stature of a

company. The PP file thickness varies between 0.18 mm to 1.25 mm.

A wide range of PP products apart from PP files such as presentation

album or display books, ring binders and PP refillable note books, PP

letter files, expansion cases for holding cheque books etc. business card

holders, clear holders and sheet protectors, presentation folders and

report covers, document action cases and system boxes are now

available.

Printing on PP Files & Folders is done by screen printing and the ink used

is indelible PVC ink. Printing on PP files is not as good as that on

cardboard since the ink might fade due to moisture.

The shelf life of PP file is about 40 years, hence though costlier than a

cardboard file is over all economical.

A PP file is more convenient to use i.e. can be folded.

2. MARKET POTENTIAL

PP file folders are now a days widely used in all Conferences/Seminars

and offices to keep the document in a better condition and safe. These

are available in various colours and appearance is good, therefore

212

preferred to a card board files. The consumption of IP Sheet during

2004-05 was 7 KT, which is likely to increase to 22 KT by 2010-11, as

projected by working group on Petrochemicals, Min. of Chemicals &

Fertilizers./ Two layer PP sheet upto 0.15 mm thickness is suitable for

different types of stationery materials, which is rapidly gaining market

acceptance in India.







is six months



cent





place to place.



project



months


213


Week





The extruder is often equipped with a gear pump to regulate output and

control sheet thickness and quality, two crucial aspects of sheet

production. The slot die, with the die lip opening set slightly greater than

the desired sheet thickness, extrudes the melt at 200O C to 230O C,

horizontally into a nip between two rolls of a three roll stack. A small

bead of melt is usually built up in the first nip so that

the surface of the sheet may be polished by the bottom roll prior to being

cooled by the central roll. This action helps provide uniform thickness

across the sheet and gives a smoother surface to the air side of the

sheet. Except in very thick sheets, crystallisation is usually complete

through the thickness before leaving the first cooling roll, and the second

cooling roll is simply for the removal of additional heat. The sheet

passes over a roller conveyor, which sometime will employ fans to

measuring device, the sheet is cut and stacked, or wound into rolls.

Mono and multilayer films upto 150 micro thickness are used to

manufacture plain and embossed film rolls to make stationery files of

different types. There lies tremendous opportunities considering the

ever increasing demand for high value products of such kind.

Normally, 2 layer comprises of Homopolymer & Copolymer of PP having

closer MFI values. The machine can also process very thin second layer

214

of material having higher sealing properties. By having this stationery

products such as files, folders, box files, computer disk covers etc. can

have better bonding between two meeting surfaces.

Sheet lines vary greatly in size, but most of the production occurs within

a fairly narrow band, especially for PP Sheet thickness of 0.2 mm to 10

mm are possible, but anything over 6 mm is unusual. Most of the

production is near 1 mm which is also the point below which the sheet is

rolled and over which it is cut and stacked.


As per customer’s specification.



(b) Value (Rs.) : 6,98,40,000.00






fresh air.





215


Land 300 500 1,50,000.00

Building 100 3500 3,50,000.00

--------------- Total : 5,00,000.00 ---------------


(a) Production Unit

i) Extrusion Machine Cap. 120 Kgs./hr.

1,00,00,000.00

ii) Cooling Tower

2,00,000.00

iii) Scrap Grinder

1,00,000.00

iv) Screen Printing Machine

1,50,000.00

v) Compressor 1,00,000.00


50,000.00

(c) Electrification & Installation @ 10% of cost & machinery 10,50,000.00 (a) & (b) (d) Pre-operative expenses 50,000.00 ----------------- Total cost of machinery & equipment ( a to d ) 1,16,00,000.00 -----------------

216


2,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 1,16,00,000.00 ------------------

106

Fixed Capital = (i) + (ii) = 5,00,000.00 + 1,16,00,000.00 =1,21,00,000.00

B. WORKING CAPITAL




Sales Executive 01 5,000.00 5,000.00


4,000.00

Watchman 02 3,000.00 6,000.00

Skilled Workers 02 3,500.00 7,000.00

Helpers 03 3,000.00 9,000.00 ----------- 41,000.00

Add perquisite @ 10% of the Salary 4,100.00 ------------ Total: 45,100.00 -----------

Or Say Rs. 45,000.00

ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./M.T (Rs.)

217

Polypropylene Granules 60 75,000 45,00,000.00


a) Power 3,00,000.00



jjj) Repairs and Maintenance

1,000.00




2,000.00


1,000.00


1,000.00

107



------------ Total: 21,000.00 ------------



218

ii) Raw Material

45,00,000.00



Total: 48,67,000.00 --------------- Working Capital for 3 months 1,46,01,000.00

13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital

1,21,00,000.00

B. Working Capital for 3 months 1,46,01,000.00 ----------------- Total: 2,67,01,000.00 ----------------- 14. FIANCIAL ANALYSIS (Rs.)



5,84,04,000.00


17,500.00


11,60,000.00

(d) Depreciation on Dies, Moulds & office equipment 1,00,000.00 @ 20%


----------------- Total: 6,28,85,620.00

----------------- Or Say Rs. 6,28,86,000.00

219


P.P. Files & Folders 720 97,000 6,98,40,000.00



(Rs.)

6,98,40,000 - 6,28,86,000 = 69,54,000.00


= 69,54.000 x 100 = 9.95 % 6,98,40,000


F. Break-even Point



17,500.00


11,60,500.00



220


32,04,120.00


2,16,000.00


-----------------

Net Profit (Per Year) Or Say Rs. 48,70,000.00


P.P. PAINT CONTRAINERS – HALF LTR. TO 20 LTRS.

1. INTRODUCTION

Paint containers are the packaging medium used for storage, handling

and distribution of paints. It consists of a container, lit and a handle,

which are made from Polypropylene (PP) & High Density Polyethylene

(HDPE). However, this profiles is based on Polypropylene. These are

made by injection moulding process, giving a single piece seamless

bottom and pilfer proof design. Generally P.P. Copolymer (PPCP) is used

for paint containers. It offers many advantages over conventional tin

containers like light weight, good aesthetic appeal, better stackability,

rust and dent free, scratch proof, reusability, sturdy handles etc.

221

resulting in a better performance and the best shelf appeal to the

customer.

The plastic containers are usually produced in the range of ½ ltr. to 20

ltrs. Type of closures vary depending upon size of article and mould

design but can be plug type or positive seal. The walls of containers are

non-tapered and hence it is easy to wrap a label or have direct printing.

2. MARKET POTENTIAL

The total installed capacity of paint containers in the country is more

than 1000 tons P.A. Hence there is good requirement for Plastic

Containers, which are replacing the traditional metal containers. With

the increase in population and rise in standard of living, the demand for

residential and office accommodation is rising in future, there will be

good demand for the paints, which will be packed in the plastic

containers.







is six months



cent



222



place to place.



project



months



Week




5. TECHNICAL ASPECT


The containers are manufactured by the usual injection moulding

process. Raw materials are fed in the injection moulding machine, where

it is plasticized and then injected into the special mould of the container.

Product is allowed to cool within mould and then ejected. The real

expertise lies in the post forming operation, which is performed on the

container. There is a curing time of 45 minutes between moulding and

post forming stage, which is carried out in cold operation. Firstly the

edges of the containers are folded in wards. In the sizing the outside

diameter (OD) of the container is sized upto the final diameter required

by using tapered Teflon bush alongwith the vacuum pressure. The sizing

223

OD is always a few mm less than the final OD required as there is some

spring back in the OD after sizing is done. Spring back varies for

different raw materials and also with climate. Handle holes are punched

on the container for handle. Then these are stored for 24 hours. Heat

treatment is given on the surface of the

111

container by using LPG gas then to prepare for printing. Printing is then

done by screen printing process for 3 colours and if four colours required

it can be done by dry off set printing. Various tests are also carried out

before selling.


Paint Containers can be manufactured as per IS : 2798 : 1964 & 1992 or

as per customers’ specification



(b) Value (Rs.) : 6,30,00,000.00






fresh air.




224



Land 500 300 1,50,000.00

Building 100 3500 3,50,000.00

--------------- Total :

5,00,000.00 ---------------



(a) Production Unit

i) Injection Moulding Machine 180 M.T. Cap. 01

40,00,000.00

ii) Injection Moulding Machine 350 M.T. Cap. 01

60,00,000.00

iii) Chilling Plant 01

4,00,000.00

iv) Scrap Grinder 01

1,00,000.00

v) Moulding Lifting arrangement 01

2,00,000.00

vi) Compressor 01

1,00,000.00

225


(c) Electrification & Installation @ 10% of cost & machinery 11,00,000.00 (a) & (b) (d) Pre-operative expenses 1,00,000.00 ----------------- Total cost of machinery & equipment ( a to d ) 1,22,00,000.00 ----------------- (e) Cost of Moulds & Dies

7,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 1,32,00,000.00 ----------------- Fixed Capital (i) + (ii) = 15,00,000 + 1,32,00,000 = 1,37,00,000.00

B. WORKING CAPITAL



Production Engineer/Manager 01 12,000

12,000.00

Sales Executive 01 8,000 8,000.00

Accountant-cum-Store Keeper 01 5,000

5,000.00

Watchman 02 3,000 6,000.00

Skilled Workers 03 4,000 12,000.00

Helpers 03 3,000 9,000.00 ------------

226

52,000.00

113

Add perquisite @ 10% of the Salary 5,200.00 ------------ Total: 57,200.00

Or Say 57,000.00 ------------

ii) Raw Material (Per Month) Qty. (Tones) Rate Rs/kg. (Rs.) P.P. Granules 50 M.T. 75,000 37,50,000.00


a) Power 3,97,500.00


b) Water 2,500.00 -------------- Total: 4,00,000.00 --------------


kkk) Repairs and Maintenance

2,000.00

lll) Transportation Charges 5,000.00

mmm) Postage and stationery

1,000.00

nnn) Telephone/Fax/Computer

2,000.00

227

ooo) Consumable Stores

1,000.00

ppp) Advertisement & Publicity

3,000.00

qqq) Insurance 10,000.00

rrr) Miscellaneous Expenses 1,000.00

------------ Total: 25,000.00 ------------



ii) Raw Material

37,50,000.00




114


A. Fixed Capital


1,26,96,000.00


228



5,07,84,000.00


17,500.00


12,20,000.00

(d) Depreciation on Dies, Moulds & Office equipment 2,80,000.00

@ 20%


------------------ Total: 5,53,89,020.00

Or Say Rs. 5,53,89,000.00

B. Sales/Turn over (per year) Item Qty.( MT) Rate (MT) alue (Rs.)

P.P. Paint containers 600 1,05,000.00 6,30,00,000.00 ½ Ltr. to 20 ltrs.


Sales(Rs) – Cost of Production (Rs.) = Profit (Rs.)

6,30,00,000 - 5,53,89,900 = 76,11,000.00


= 76,11,000_ x 100 = 12.1 % 6,30,00,000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 76,11,000 x 100 = 28.33 %

229

2,63,96,000

F. Break-even Point



17,500.00


12,20,000.00




31,67,500.00


2,73,600.00


72,000.00

--------------- Total: 51,10,620.00

Or say Rs. 51,11,000.00 Net Profit (Per Year)


230

P.P. ROPES

1. INTRODUCTION

Plastic fibres are produced in our country through conventional process

which needs huge investment in plant and machinery. Wherever

application of yarn does not require finer denier, the new technology i.e.

the film fibrillating technology can be used to produce medium and heavy

duty yarn with less investment. Pattern fibrillation is used in Europe and

America for the manufacture of HDPE/PP Ropes for versatile applications.

This technology is not available in our country.

2. MARKET POTENTIAL Fibrillated Tapes/Ropes are having wide applications. Therefore, it is

replacing conventional and costly materials. There is huge demand from

abroad especially for quality ropes. In our country there are a few

manufacturers and hardly able to meet the export demand. In this plant

HDPE/PP Rope will be manufactured to cater to the demand from

Shipping/Fishing Industry. Apart from consumer market, there is good

demand for HDPE Rope from Middle East, Dubai, Saudi and African

Countries. In our country, there is good market for PP Ropes and scope

for export to USA, Middle East and European Countries.

Apart from Ropes, other items can also manufactured with the help of

attachment/ equipment. There is good demand for these products such

as –

(a) Stitching yarn can be sold in large quantity for Fertiliser Companies

and other woven sacks manufacturers export from captive

consumption. It can also be used as industrial Sewing Thread for

stitching of upholstery, shoes and leather products.

231

(b) Carpet Backing Yarn made from PP Fibrillated tapes is being used

world over instead of Jute Carpet Backing Yarn because of various

advantages. In view of this there is good demand for Exports of PP

Fibrillated carpet backing yarn.

117

(c) India has a very good market for Fishing Twines. PP is light in

weight, does not absorb water and is fungus free. Therefore,

Fishing Twins made from PP has wide scope.

(d) PP Fibrillated yarn is also used as cable filling yarn (Cable Fillers)

because of its light weight and high tensile fibre quality.

Telecommunication cables are strengthened with these tapes.

(e) It is also used as Synthetic Grass for making Synthetic Grass

Carpet/Lawns with tufting process.

(f) Other applications are Industrial Filters, Table or Floor Mating

Fabric, Fancy Yarn, Ultra Violet Display Card with inside core of

fibrillated tapes etc.







is six months


232


cent





place to place.



project



months



Week




5. TECHNICAL ASPECT


The film is produced on T-Die Plant. The film is pulled by nip rollers and

is slit. The tapes are further orientated or stretched under specific

temperature and air velocity.

It is then mechanically fibrillated to produce fish net like structure with

the help of pattern fibrillating machine and further passed through

233

stabilising oven to be wound on bobbin winders. The fibrillate tapes thus

produced are then twisted on rope laying machines to make ropes as per

the thickness required. Since there is good market for PP ropes abroad,

the project is prepared using 80% PP and 20% HDPE as raw material.


The Ropes are manufactured as per IS : 5175 – 1992



(b) Value (Rs.) : 14,70,00,000.00






fresh air.






234

Land 2120 300 6,36,000.00

Building 1060 3500 37,10,000.00 --------------- Total : 43,46,000.00 ---------------


(a) Production Unit

1) Extrusion line & Converting machines

4,50,00,000.00

2) Chilling Plant 30 TP 10,00,000.00


(c) Electrification & Installation @ 10% of cost & machinery (a) & (b) 46,10,000.00 (d) Pre-operative expenses 1,00,000.00 Total cost of machinery & equipment ( a to d ) 5,08,10,000.00 (e) Cost of Moulds, Dies & Misc. items 2,00,000.00 (f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 5,13,10,000.00 ----------------- Fixed Capital (i) + (ii) = 43,46,000 + 5,13,10,000 = 5,56,56,000.00

235

B. WORKING CAPITAL




Sales Executive 02 10,000.00 20,000.00

Accountant 01 10,000.00 10,000.00


8,000.00

Watchman 03 4,000.00 12,000.00

Supervisor 03 6,000.00 18,000.00

Skilled Workers 30 5,000.00 1,50,000.00


3,00,000.00

------------- 5,38,000.00

Add perquisite @ 10% of the Salary 53,800.00 -------------- Total: 5,91,800.00

Or Say Rs. 5,92,000.00

ii) Raw Material (Per Month) Qty. (MT) Rate Rs./MT (Rs.)

Polypropylene 125 75 93,75,000.00


a) Power 6,45,500.00 (60% of efficiency x 430 KW x 500 hrs. x Rs. 5 per unit)

236



10,000.00




3,000.00


5,000.00


5,000.00

121



------------ Total: 55,000.00 ------------

12. TOTAL WORKING CAPITAL ( Per Month )


ii) Raw Material

93,75,000.00

g) Utilities 6,50,000.00


237

Total: 1,06,72,000.00

Working Capital for 3 months 3,20,16,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital


3,20,16,000.00




12,80,64,000.00


1,85,500.00


50,81,000.00


40,000.00


60,000.00


------------------- Total: 13,76,73,940.00

Or Say Rs. 13,76,74,000.00


238

PP Ropes 1500 98,000 14,70,00,000.00

122



(Rs.)

14,70,00,000 - 13,76,74,000 = 93,26,000.00


= 93,26,000 x 100 = 6.3% 14,70,00,000


F. Break-even Point



1,85,000.00


50,81,000.00




42,43,440.00


28,41,600.00

239

g) 40% of other contingent expenses 2,64,000.00 ----------------- Total: 1,27,75,040.00

----------------- Or Say Rs1,27,75,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 1,27,75,000 x 100 ____ 1,27,75,000 + 93,26,000 = 1,27,75,000 x 100 2,21,01,000 = 57.80%

PP WOVEN SACKS

1. INTRODUCTION

Synthetic woven sacks are usually made of Polypropylene (PP) / High

Density Polyethylene (HDPE). These are either laminated, or supplied

without lamination depending upon end application. Synthetic Woven

Sacks has more life and strength, as compared to jute bags. The usage

has increased during the last few years.

PP woven sacks are used in India for packaging of

Cement

Chemicals

Polymers

Food grains

Retail Packaging of Commodities etc.

2. MARKET POTENTIAL

240

380 KT PP was consumed for Raffia in India in 2004-05. As per the

Working Group Report on Petrochemicals, Ministry of Chemicals &

Fertilisers, the demand of PP Woven Sacks in India is projected to be 738

KT by 2010-11 at a healthy of 10% p.a.







is six months



cent





place to place.



project



months



Week

241




5. TECHNICAL ASPECT


The process of manufacturing involves following steps:

1. Manufacturing of tapes

2. Weaving of tapes into fabrics

3. Lamination or extrusion coating (if necessary)

4. Cutting, stitching & printing

1. Manufacturing of tapes

The granules of plastic raw materials are fed to the extruder

hopper, where they are plasticized and the melt flow is passed

through a T-die. Film formed is slit into thin strips. These strips

are then oriented by stretching them under heated condition at a

pre-determined ratio. Finally, the tapes are wound on cheese

winders.

2. Weaving of tapes into fabrics

The tapes so obtained by step 1 are fed to circular looms and

woven into tubular fabrics on cloth winder.

125

3. Lamination or extrusion coating

Fabric produced in stage 2 may require to be coated. In case of PP

woven sacks lamination is done by special grade of PP only.

242

Fabric roll is mounted on unwinder from where it passes through

two rolls over which T-die connected to the extruder is located.

The melt of the material which is to be coated on the fabrics comes

through the T- Die as an extrudate and coats the woven fabric. It

is then cooled under the pressure and wound.

4. Cutting, stitching and printing

In stage 3 or the unlaminated fabric as produced at the end of

stage 2 is cut, and the bottom is stitched. Then it is printed as per

the requirement of the customer.


Woven Sacks are manufactured as per

IS : 9755/6340 & I4887 – for Food Grains

IS : 12100 for Flour ; 11024 for Milk Powder



(b) Value (Rs.) : 17,64,00,000.00






fresh air.




243



Land 1580 300 4,74,000.00

Building 790 3500 27,65,000.00

--------------- Total :

32,39,000.00 ---------------



(a) Production Unit

i) Extrusion line with winders 01

2,00,00,000.00

ii) Looms 35

1,00,00,000.00

iii) Chilling Plant 01

2,00,000.00

iv) Coating line 01 51,00,000.00


1,00,000.00

(c) Electrification & Installation @ 10% of cost & machinery 35,40,000.00 (a) & (b) (d) Pre-operative expenses

1,00,000.00


3,90,40,000.00

244


2,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ----------------- Total: 3,95,40,000.00 ----------------- Fixed Capital: (i) + (ii)=32,39,000 + 3,95,40,000 = 4,27,79,000.00

B. WORKING CAPITAL




Sales Executive 02 10,000.00 20,000.00

Accountant 01 10,000.00 10,000.00

127


8,000.00

Watchman 03 4,000.00 12,000.00

Supervisor 03 6,000.00 18,000.00

Skilled Workers 84 4,000.00 3,36,000.00

Unskilled Workers 160 3,000.004, 80,000.00 -------------- Total: 9,04,000.00

Add perquisite @ 10% of the Salary 90,400.00 -------------- Total: 9,94,400.00 --------------

245

Or Say Rs. 9,94,000.00 ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./MT (Rs.)

LLDPE 150 65,000

97,50,000.00

Chemicals & Other Items 2,50,000.00 ----------------- Total: 1,00,00,000.00 -----------------


a) Power 97,50,000.00 (60% efficiency x 650 KW x 500 hrs. x Rs. 5 per unit)

b) Water 5,000.00 ---------------- Total: 98,00,000.00 --------------- iv) Other Contingent Expenses (Per month) (Rs.)

a. Repairs and Maintenance 10,000.00

b. Transportation Charges

20,000.00

c. Postage and stationery

2,000.00

d. Telephone/Fax/Computer 3,000.00

e. Consumable Stores 5,000.00

f. Advertisement & Publicity 5,000.00

g. Insurance

5,000.00

h. Miscellaneous Expenses 5,000.00

--------------

246

Total: 55,000.00 --------------

128



ii) Raw Material

1,00,00,000.00



Total: 1,20,29,000.00 ----------------- Working Capital for 3 months 3,60,87,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.)

A. Fixed Capital


3,60,87,000.00




14.43.48.000.00


1,38,250.00


39,04,000.00

247


40,000.00


60,000.00


------------------- Total: 15,79,54,170.00

Or Say Rs.15,79,54,000.00

B. Sales/Turn over (per year) Item Qty.( MT) Rate Rs./MT Value (Rs.)

LLDPE Woven Sacks 1800 98,000.00 17,64,00,000.00



(Rs.)

17,64,00,000 - 15,79,54,000 = 1,84,46,000.00

129


= 1,84,46,000 x 100 = 10.45% 17,64,00.000

E. Rate of Return = Net Profit x 100 Total Capital Investment = 1,84,46,000 x 100 = 23.38% 7,88,66,000

F. Break-even Point

248



1,38,250.00


39,04,000.00




94,63,920.00


47,71,200.00

g) 40% of other contingent expenses 2,64,000.00 ----------------- Total:

1,87,01,370.00

Or Say Rs, 1,87,01,000.00


B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit = 1,87,01,000x 100 1,87,01,000 + 1,84,46,000 1,87,01,000 x 100 3,71,47,000 = 50.34 %

249

P.P. THERMOFORMING

1. INTRODUCTION

Thermoforming is one of many manufacturing process that converts

plastic resin into usable everyday product. Thermoforming is considered

to be one of the most cost-effective processes in plastic manufacturing

because of the low moulding costs and fast moulding cycles. Speed and

cost efficiency are the highlighted qualities that thermoforming offers

which lead the way for the process becoming so important in industry

today.

We have entered into another area of plastic consumer goods, which are

continuously replacing the traditional items. The use of disposable items

is increasing day by day because of growing hygiene consciousness, low

cost, easy usability and impressive appearance. The major products that

are in use are disposable glasses, cups, plates and spoons. These have

become a part of the hectic life style due to their convenience. Apart

from being used at home, they also come in handy during parties, picnics

and other functions and get-togethers. The major user of cups are the

ice cream manufacturers and they have started using plastic cups

instead of paper ones that were being used earlier. The main advantage

of these plastic cups is that they are completely leak proof. Plastic cups

can be made up of different sizes and they can hold bulk material easily

in comparison to the traditional paper cups.

The new carry away fast food culture has created the demand for the

articles to pack food item. These articles consist of variety of packing

boxes such as small tumblers, bowls, etc. Apart from this the use of

blisters for packing pencil cell, toothbrushes, pens and variety of toys,

250

etc. has also been on the rise. This is the new emerging area, which can

be tapped as an ancillary support to the various products of different

kind of above-mentioned products.

2. MARKET POTENTIAL

As per the Working Group Report on Petrochemicals, Ministry of

Chemicals & Fertilisers, the demand of PP Sheet in India is projected to

be 22 KT by 2010-11.

The consumption of PP in PP Thermoformed Cups in India in 2004-05

was 11 KT. Looking to the advantage of thermoformed product, the

demand has increased in various sectors for packaging and disposable

cups etc. Some of the major sectors where thermoformed products

are used are Food Industries, Pharmaceutical, Electronics, Horticulture.

Cosmetics, Automobile Industry etc.







is six months



cent





place to place.

251



project



months



Week




5. TECHNICAL ASPECT


In the thermoforming of PP, constant air pressure and the use of a

preheating oven are essential requirements of a viable process. The

heating station includes two plates, each consisting of 6 transversal rows

with 5 IR heating elements. The total power of each plate as well as the

power of each transversal row can be adjusted. The position of the

thermic screen allows adjusting the length of the exposed zone of the

sheet by a multiple of the forming step.

The thermoforming station consists of two mobile tables (lower) &

(upper) on which the mould, the chamber and in some cases the mobile

plugs are fixed. It is possible to introduce compressed air into the

chamber and to create a vacuum in the mould. The mould is

252

thermoregulated. A measuring device allows visualizing the

thermoforming cycle by measuring the pressure in the mould and in the

chamber and the plug movement. On one cavity, contact sensors are

installed. The cutting is a delicate operation for PP, especially when it is

done after the forming station. In order to centre properly the cutting

operation, the knives are mobile in relation to the frame. They are

positioned with the help of TEFLON centering which lodge in the plastic

cup. The knives are heated to 170˚ C and the clamping force must be

strong in order to achieve regular cutting.

The quick cooling of the polypropylene when contacting the tool

increases the consistency and the material for the contact areas.

Especially during the plug displacement, the strain rates value are almost

zero in the frozen areas (that means in the centre of the sheet) and the

deformation is localized in the warmer zones.

Thickness profile and mechanical resistance are closely linked especially

for thermoforming parts. To design a packaging component, the process

conditions have to be optimized and the mechanical behavior to be

calculated.

Recent experimental studies confirm that, even with Homopolymer

polypropylene, well-controlled thermoforming conditions allow to form

deep cups with good properties.

- Processing cycle time

- Thickness distribution

- Transparency

- Mechanical properties

The optimizations must become more efficient because it is easier to

quickly test different tool designs, process parameters and polypropylene

grades.

253


Thermoformed products are manufactured as per Customers’

requirement and Specification.



(b) Value (Rs.) : 6,60,00,000.00






fresh air.






Land 300 500 1,50,000.00

Building 200 3500 7,00,000.00 --------------- Total : 8,50,000.00 ---------------

254


(a) Production Unit

i) Automatic Thermoforming Machine 1

2,50,00,000.00

ii) Chilling Plant

5,00,000.00

iii) Four Colour Dry Offset Printing 1 9,00,000.00 machine with automatic unloading

iv) Air Compressor 1 2,00,000.00

v) Scrap Grinder 1

1,00,000.00


1,00,000.00


(d) Pre-operative expenses 1,20,000.00 ----------------- Total cost of machinery & equipment ( a to d ) 2,96,00,000.00 ----------------- (e) Cost of Moulds & Dies

6,00,000.00

(f) Cost of Office Equipment/Furniture/Computers etc. 3,00,000.00 ------------------ Total: 3,05,00,000.00 ------------------

Fixed Capital = (i) + (ii) = 8,50,000 + 3,05,00,000 = 3,13,50,000.00

255

B. WORKING CAPITAL






4,000.00

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00 ------------ 44,500.00

Add perquisite @ 10% of the Salary 4,450.00 ----------- Total: 48,950.00

Or Say Rs. 49,000.00 -------------- ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./M.T. (Rs.)

P.P. Granules 50 75,000 37,50,000.00


a) Power 1,65,000.00


b) Water 2,000.00 --------------

256

Total: 1,67,000.00 -------------- iv) Other Contingent Expenses (Per month) (Rs.)

sss) Repairs and Maintenance

2,000.00

ttt) Transportation Charges 5,000.00

uuu) Postage and stationery 1,000.00

vvv) Telephone/Fax/Computer

2,000.00

www) Consumable Stores

1,000.00

xxx) Advertisement & Publicity

2,000.00

yyy) Insurance 10,000.00

zzz) Miscellaneous Expenses 2,000.00

----------- Total: 25,000.00 -----------



ii) Raw Material

37,50,000.00




257


A. Fixed Capital


1,19,73,000.00




4,78,92,000.00


35,000.00


29,60,000.00

(d) Depreciation on Dies, Moulds & office equipment 1,80,000.00 @ 20%


----------------- Total: 5,62,65,760.00

----------------- Or say Rs. 5,62,66,000.00


P.P. Thermoforming items 600 1,10,000 6,60,000.00


258


(Rs.)

6,60,00,000 - 5,62,66,000 = 97,34,000.00


= 97,34,000_ x 100 = 14.74 % 6,60,00,000


F. Break-even Point



35,000.00


29,60,000.00




51,98,760.00


2,35,200.00

259


----------------

Or say Rs. 88,00,000.00



260

THREE LAYERS CO-EXTRUDED FILM

1. INTRODUCTION

Three layers blown film extrusion (also known as blow film co-extrusion)

is a process of simultaneously extruding in molten stage three number of

polymers which adhere to each other through a common die to form an

integral film of unique strength and barrier properties. The selection of

layers depend upon end properties required as well as items to be

packed. Some combinations of layers as –

Sr.

No.

Combination Application

1 LL/LD/LL Heavy duty bags

2 LL/HD/LL Industrial based food oil, baked

confectionery, dry vegetables, dry fruit,

hydrogenated oil, Lube oil

3 LL/HD/LD Industrial based food oil, baked


hydrogenated oil, lube oil.

4 LD/Scrap/LD Garbage bags

5 HD/LD/LD Industrial based food oil, baked


hydrogenated oil, lube oil.

6 HD/LL/Primacor Oil packaging

In this project it is discussed LLDPE/LDPE/LLDPE layers combination,

which produce the heavy duty bags.

2. MARKET POTENTIAL

261

Now a days the Three Layers Co extruded blown film is playing a major

role in the packaging industry. It is replacing the conventional packing

materials like paper, aluminium foil, tin, glass etc. These films are

considered for packing purpose because of specific requirement of self

life and protection to product. The other advantages are excellent

resistance to puncturing, heat sealability, gas barrier, high mechanical

property as well as high busting strength etc. Due to these properties

these films are having very good scope for packaging.

139







is six months



cent





place to place.



project


262


months



Week





Raw materials are fed into the hopper which gets heated in the barrel

with the help of the heater. The melt in the extruders is conveyed

forwarded by the screw rotation. The three extruders individually feed

the three channels within the die. All the flow channels coverage into a

single flow channel just a little distance before the material is blown out

from the annual die orifice. The rotating die

140

ensures even distribution of the melt flow while coming out of the die

orifice. The bubble is cooled by means of air circulation arrangements.

The pre-determined size of the blown film is obtained by inserting

compressed air through the die. Iris rings, flattering boards, counter

rotating nip rolls draw the film upwards and flatten it into a two layer lay

flat film, which is wound on the winder. The film is also treated with

corona discharge equipment and then printed on flexographic or

rotogravure printing machine in desired colours.

263


Co-extruded Films are manufactured as per IS : 10171



(b) Value (Rs.) : 10,54,50,000.00


Total connected load (HP/KW)




fresh air.






Land 500 500 2,50,000.00

Building 300 3500 10,50,000.00

--------------- Total : 13,00,000.00



264

(a) Production Unit

i) Three Layer Extruded Blown Film 1 57,00,000.00 Plant Working Capacity 185 kg/ltr.

ii) Corona Treater 1 5,00,000.00

iii) Chilling plant 1

5,00,000.00

iv) Compressor 1 1,00,000.00

v) Rotogravure printing machine with four colours 1 15,00,000.00


2,00,000.00


(d) Pre-operative expenses 50,000.00 --------------- Total cost of machinery & equipment ( a to d ) 96,00,000.00 --------------- (e) Cost of Moulds/Dies & other equipment

2,00,000.00


Fixed Capital (i) + (ii) = 13,00,000 + 1,01,00,000 = 1,14,00,000.00

B. WORKING CAPITAL


Designation Nos. Salary (Rs.) (Rs.)

265




4,000.00

Watchman 2 3,000.00 6,000.00

Skilled Workers 3 3,500.00 10,500.00

Helpers 3 3,000.00 9,000.00

-------------- Total: 44,500.00

142

Add perquisite @ 10% of the Salary 4,450.00 -------------- Total: 48,950.00 -------------- Or Say Rs. 49,000.00 ii) Raw Material (Per Month) Qty. (M.T.) Rate Rs./MT (Rs.)

LLDPE Granules 62 75,000

46,50,000.00

LDPE Granules 30.5 90,000 27,45,000.00 --------------- Total: 73,95,000.00 ---------------



b) Water 2,000.00 -------------- Total: 3,02,000.00

266

-------------- iv) Other Contingent Expenses (Per month) (Rs.)


2,000.00




2,000.00


1,000.00


2,000.00


h) Miscellaneous Expenses 2,000.00 ------------ Total: 25,000.00 ------------



ii) Raw Material

73,95,000.00

143



267

Total: 77,71,000.00 --------------- Working Capital for 3 months Rs. 2,33,13,000.00 13. TOTAL CAPITAL INVESTMENT (Rs.) A. Fixed Capital


2,33,13,000.00

------------------ Total: 3,47,13,000.00 ----------------- 14. FIANCIAL ANALYSIS (Rs.)



9,32,52,000.00


52,500.00

(c) Depreciation on machinery& equipment @ 10% 9,60,000.00 (d) Depreciation on office equipment @ 20%

60,000.00

(e) Interest on total Capital Investment @ 12% 41,65,560.00

----------------- Total: 9,84,90,060.00

----------------- Or Say Rs. 9,84,90,000.00


268

Three Layer Co-Extruded Film 1110 95,000 10,54,50,000.00



(Rs.)

10,54,50,000 - 9,84,90,000 = 69,60,000.00

144


= 69.60.000 x 100 = 6.60% 10,54,50.000


F. Break-even Point



52,500.00


9,60,000.00

c) Depreciation on Dies, Moulds & Office Equipment 1,00,000.00 @ 20%



41,65,560.00

269


2,35,200.00


----------------

Net Profit (Per Year) Or Say Rs. 56,69,000.00

B.E.P. % = Fixed Cost x 100 Fixed Cost + Net Profit

= 56,69,000 x 100 56,69,000 + 69,60,000

= 56,69,000 x 100 = 44.8% 126,29,000

270

ANNEXURE – I

MACHINERY & EQUIPMENT SUPPLIERS

1) A-ONE ENGINEERING

71/2 Phase – 1, GIDC Vatva, Ahmedabad-382 445 Phone : 079-25834843Fax: 079-25834843 E-mail : [email protected] Web: www.aoneengineering.com Products/Services : Plastic Processing machinery (Bag making machine)

2) A ONE INTERNATIONAL

11, Amar Estate, Anil Starch Road, Opp: Super Bread Factory, Naroda Road, Ahmedabad-380 025. Phone: 079-22201482/22201861 Fax: +91-79-22203684 E-mail: [email protected] Web: http: \\www.newyesh.com Products/Services: HDPE/PP Woven Sack Machinery: 1) High speed 4,6 &8 shuttle circular looms 2) High speed magnetic type cheese winders 3) Flexographic printing machines 4) Bale Press Machines 5) Sutli Plant 6) Sutli Monofilament box strapping & all types of winders 7) Spares for all the above

3) AMBICA PLASTIC MACHINERY MANUFACTURERS

1-2, Kansawala Estate, Opp: Chakudia Mahadev, Rakhial, Ahmedabad-23. (Guj.) INDIA Phone: (O) +91-79-2274 5089, 6512 6275 Fax: +91-79-2278 2613 Cell: 098251 57891, 092274 48246 E-mail: [email protected]/[email protected] Web: www.ambicaplastic.com Products/Services : Reprocessing/H.D.P.E. Monofilament/P.P. Tap Plants Sutli Plant with “T” Die HDPE/P.V.C. Pipe Plant Tubing Plant Ancillary Equipments PP/HDPE Rope Machinery Box Strapping Plant Jerry Can Plant

271

4) CENTRAL MACHINERY &PLASTIC PRODUCTS

1, Lajya Estate, Mogra Road, Andheri East, Mumbai-400 069. Phone : +91-22-28366198 Fax: +91-22-28375271 E-mail: [email protected] Web : www.cmppin.com Products/Services : Manufacturers of fully automatic blow moulding Machines for processing of PVC, HDPE, LDPE, PP materials from 5 ml. to 60 ltrs.

5) DYNAMIC ENGINEERS (INDIA)

B-54, Hari Nagar (Clock Tower), New Delhi-110 064. Phone: 011-25496293/25126188 E-mail: [email protected] Products/Services: Cooling Tower, Heat Exchanger, Indl. Chiller, Mould Temp. Controller

6) FERROMATIC MILACRON INDIA LTD.

92 Phase – I GIDC, Vatva, Ahmedabad-382 445 Phone: 079-25890081 Fax: 079-25830125 E-mail: [email protected] Web: www.milacronindia.comm Products/Services : Mfg. of plastics injection moulding machines from the Range of 30 tons to 3000 tons and extrusion blow moulding machines.

7) FIVE STAR ENGINEERS

Bhagwati Estate, Opp: Bavri Kumbharwada, Idgah Road, Pratapnagar, Baroda-390 004. Phone : (F) 0265-2581698 Telefax : 2580026 (R) 0265-2564896 (M) 098980 87865 E-mail: [email protected] Web : www.fivestarengineers.com Products/Services : Double Die Extruder, Single Die Extruder

8) FIXOPAN MACHINES PVT. LTD.

71, Nehru Place, New Delhi-110 019 Phone: 0129-2237212/5067210-12 Fax: 0129-2237672 E-mail: [email protected]/sales @fixopan.net Web: www.fixopan.net Products/Services : Manufacturers of Rotomoulding machines, Pulverisers, Molds in cast aluminium/SS/MS, finished roto parts/planters.

272

9) GUJARAT MACHINERY

Plot No. 524, GIDC Phase II, Vatva, Ahmedabad-382 445. Phone: +91-79 25830043 Fax : 079 25332439 E-mail : intek@icenet Web: www.gujaratmachinery.com Products/Services : Plastic machinery viz: Wide Width Lamination Plants.

10) JAGMOHAN INDUSTRIES 115 Sharad Industrial Estate, Lake Road, Bhandup (West), Mumbai-400 078. Phone : 25950246 Fax: 25965434 E-mail: [email protected] Web: www.jagmohan.com Products/Services : Plastic Automatic Blow Moulding Machine from 100 Ml to 1000 Ltrs.

11) JAI MATA ENGINEERING

No. 734, Rajagopalanagar, B/h Maruti Theatre, Peenya 2nd Stage, Bangalore-560 058. Phone: 080-6763 4323 Cell. : 093437 33300, 098862 14330 Products/Services : Single Decker Cutting & Sealing Machine, Double Decker Cutting & Sealing Machine, Point to Point Cutting & Sealing Machine, Pouch Making Machine for Carry Bags, Slide Sealing Machine, Polyethylene/PP/HM/LLDPE Extruders, reprocessing Units, Automatic Roll Winding Nes, Scrap Grinders, Colour Mixer/Driers Card Making (sutli) Machine, Rotogravure Printing Machine, Automatic Liquid – Fill & Seal Machine, Automatic Form – Fill & Seal Machine, Thermoforming Machine, Seat Plant & Die.

12) KABRA EXTRUSIONTECHNIK LTD.

Kolssite House, Veera Desai Road, Andheri (West), Numbai-400 053. Phone : 26734822/24 Fax : 267335041 E-mail: [email protected] Web : www.kolsite.com Products/Services : Twin screw extruders for RPVC pipes/profiles/pellets high output single screw extruders for PO pipes raffia tape plants & cheese winders monolayer & multilayer film plants.

13) KONARK PLASTOMECH PVT. LTD.

Plot No. 81, GIDC, Odhav, Ambica Nagar Road, Ahmedabad-382 415. Phone : 079-22281670 Fax : +91-79-22890874

273

E-mail : [email protected] Web : www.konarkplastomech.com Products/Services : Mfrs. Thermoplastic extrusion plants.

14) LARSEN & TOUBRO ltd.

LTM Business Unit, Mount-Poonamallee Road, Post Bag No. 990, Chennai-600 089. Phone: 22497360 Fax: 044-22492471 E-mail : [email protected] Web: www.ltmindia.com Products/Services : Injection Moulding Machines, Auxiliary Equipment

15) LOHIA STARLINGER LIMITED D-3/A, Panki Industrial Estate, Kanpur-208 022. Phone : +91-5112-282001 Fax : +91-5112-282205 E-mail: [email protected] Web : www.lohiagroup.com Products/Services : Complete range of Machinery for manufacture of PP and HDPE Woven sacks and Fabrics comprising of – Tape Extrusion Lines – High Speed Inverter controlled Tape Winders – Circular Weaving Machines – Fabric to Bag Conversions Machines – Compact PP Multifilament Spinning Machine.

16) MACPLAST

49, Shreenathji Estate, Nr. Panna Estate, B/h B.O.C. Gases, Rakhial, Ahmedabad-380 021 (Guj.) INDIA Phone : (F) 079-22746802 E-mail : [email protected]/[email protected] Products/Services : Multi Layer Film Plant, Two Layer PPTQ Blown Film Plant, Twin Head Mono Layer Blown Film Plant, Sutli Plants, Box Strapping Plants, LDPE Kisna Pipe Plants, HDPE Pipe Plants, Reprocess Plants, Woven Sacks Tape Plant.

17) MAMATA BRAMPTON ENGINEERING PVT. LTD.

5/1/1A/1, GIDC, Phase-1, Vatva, Ahmedabad-382 445. Phone: 079-55309800 Fax : 079-25832026 E-mail: [email protected] Products/Services : Multilayer co-ex blown film plant

274

18) MAMATA MACHINERY PVT. LTD. 5/1/1A, GIDC Estate, Phase-1, Vatva, Ahmedabad-382 445. Phone: 079-55309800 Fax : 079-25832026 E-mail: [email protected] Web : www.mamata.com Products/Services : Plastic Bag & Pouch making machine, Packaging machines.

19) NEOPLAST ENGINEERING PVT. LTD.

43, GIDC Estate, Phase-1, Vatva, Ahmedabad-382 445. Phone : +91-79-25831185 Fax : +91-79-25835298 E-mail : [email protected] Web : www.neoplasstindia.com Products/Services : Complete compounding plant with automation, High speed heater cooler mixers, Single screw extruders, Super conical twin screw extruders, Down stream equipments for R PVC pipe, profile, pelletizing application, Under water pelletizing system, Air cooled die face pelletizing system, Material handling system, Liquid metering/Dosing system, Anti-dusting/de-gassing system, Labaoratory scale equipments like – lab mixer, single screw extruder with various attachments, two roll mill, hydraulic press.

20) PANCHAL PLASTIC MACHINERY P. LTD. Plot No. 127, GIDC, Umbergaon,Dist. Valsad-396 171 Phone : 0260-2563391/92 Fax : 0260-2562892 E-mail: [email protected] Web: www.panchal-plastic.com Products/Services : Agglomerator/Densifier machine – extruder (Single Screw & Twin Screw) – Blown Film Plant – Box strapping plant, Flat Film & Sheet – Pipe & Profiles – Grinder/shredders/Crushers – Compounding Plant – Re-processing/recycling Plant – Hot die-face cutting under air & water cooling – in-line recycling plant for film waste & lumps waste – Mixer (type-high speed, tumbler, vertical) – strand pelletizer - Screen changer (Hydraulic & manual) – Grinding, washing & drying plant for PET bottle, film waste & moulded article, PET-recycling plant-bags/sacks cutting & sealing machine.

21) R.R. PLAST EXTRUSIONS PVT. LTD.

B-3, Nand Jyot Ind. Estate, Safed Pool, Sakinaka, Andheri-Kurla Road, Andheri (E), Mumbai-400 072. Phone : +91-22-2852 0396/2850 5208 Telefax : 2850 9603 Cell : 9967023161 E-mail : [email protected]/[email protected] Web : www.rrengg.com Products/Services : RR’s Drip Irrigation Pipe Plant with Auto Coiler

275

22) RAJOO ENGINEERS LIMITED Survey No.210, Plot No.1, Industrial Area Veraval Shapar, Rajkot-360 002. Phone : 0091-2827-252701/2 Fax : 0091-2827-252700 E-mail : [email protected] Web. www.rajoo.com Products/Services : FOILEX:Monolayer Blown Film Lines for PE/PP/PVC. MULTIFOIL: Multilayer Upward Extrusion Blown Film Lines. AQUAFLEX : Multilayer Downward Extrusion Blown Film Lines. LAMINA: Mono & Multilayer Sheet Lines for PS/PP/PET/LDPE. DISPOCON: Thermoformers for PS/PP/PET. TWINEX : Single and Twin Screw Lines for pipes and profiles. HDPE permanently lubricated duct plant for optical fibres including nylon rope insertion.

23) RANA & SONS

Plot No. 128-A, Govt. Ind. Estate, Charkop Kandivali West, Mumbai-400 067. Phone : 28683897/4181 Fax: +91-22-28682244 E-mail: [email protected]/[email protected] Web: www.ranasons.com Products/Services : Blow Moulding Machine, Injection Moulding Machines, PET Stretch Blow Moulding Machines.

24) REMICA PLASTIC MACHINERY MANUFACTURERS

2/AB Sardar Patel Ind. Estate, Near Gujarat Petrol Pump, Narol, Ahmedabad-382 405. Phone : 079-25712741 Fax: 079-25714234 E-mail : [email protected] Web. www.remicaplastics.com Products/Services : Manufacturers of Thermoplastic Extrusion Plants for Tapeline, Circular Looms, Extrusion Lamination Plants.

25) STAR FLEX INTERNATIONAL

A-43, Street No. 7, Anand Parbat Industrial area, New Rohtak Road, New Delhi-110 005. Phone : +91-11-2876 5588 Telefax: +91-11-2876 5588 Mobile : 093111 45588, (TATA) 092135 02930 Products/Services : High Class Flexographic/Rotogravure Printing Machine.

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26) SUNRISE PLASTIC MACHINERY MANUFACTURER B/21-22, Ambica Estate, Ambikanagar, Nr. Hanuman Temple, Odhav, Ahmedabad-382 415 (Guj.) INDIA. Phone : (O) 079-65137486 Cell : 098253 58581, 098256 15776, 098793 01422 E-mail : [email protected] Web : www.sunriseplastic.tradeindia.com Products/Services : ‘T’ Die Sutli Plant, PP/HDPE Mono Filament Plant, PP/HDPE Box Strapping Plant, PP TQ Blown Film Plant, HM/LD/LLDPE Mono Layer, Blown Film Plant, Multilayer Blown Film Plant, Lamination Plant, Air Bubble Sheet Plant, PP/HDPE/Rigid PVC Pipe Plant, PP/HDPE Woven Sacks Plant, Reprocess Plant.

27) TWIST ENGINEERING WORKS

C/1, 4410, Phase-4, G.I.D.C. Estate, B/h Indo-German Tool Room, Vatva, Ahmedabad-

382 445 (Guj.) INDIA

Phone : (O) 079-25842878, 30913587 Fax: 079-25840429 E-mail : [email protected], [email protected] Web: www.twistplasticmachinery.com Products/Services : Extrusion Plants for – Rigid PVC, HDPE, HM/HDPE, LLDPE, LDPE and PP Blown Film Plant, Above Plants with Rotating Extruder/Rotating Die, Pipe, Casing Caping, Section & sleeve Plants for PVC/HDPE PP & PP-R, PVC Braided & Suction Hose Multilayer Co-Extrusion Film Plants, Plastic Sheet Plant with Teedie & Steel Polishing Stack, PVC Wire/Cable Plant & Spool Drum/Winder, PVC Compounding Plant with Die-Face Cutter & Reprocessing Plant, PP/HD Box Strapping Plant, Rafia Tape Plant, Scrap Grinder and Agglomerater, Special Specification Plants on request & Extruders with ‘Realloy’ Barrel, LD Foam Film Plant, Automatic Pipe Cutter, High Speed Mixers & Heater-Cooler Mixers.

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ANNEXURE - II

RAW MATERIAL SUPPLIERS

1. BASF STYRENICS PVT. LTD. RBC Mahindra Towers 5th Floor B-Wing, Dr. G.M. Bhonsale Marg Worli, Mumbai – 400 018 Phone: 55618227 Fax: 56604073 E-mail: [email protected] Web: www.basf.com Products: ESCR Polystyrene, ABS, SAN, MABS, ASA Blends etc.

2. BAYER MATERIAL SCIENCE PVT.LTD. Building D-527, Kolshet Road, Thane – 400 607 Phone: 91-22-25311297/285 Fax: 25455069 E-mail: [email protected] Web: www.bayermaterialscience.com Products: Polycarbonate (PC) PC Films & PC Sheets, PC Blends

3. DOW CHEMICAL PACIFIC (SINGAPORE) PTE LTD. 260 Orchard Road, # 18-01, The Heeren, Singapore – 238855 Phone: (65) 68353773 Fax: (65) 68340320 E-mail: [email protected] Web: www.dowplastics.com Products: Polyethylene resins, Polystyrene, Polypropylene, Engineering Thermoplastics, Elastomers and Speciality Products, and Wire & Cable Compounds.

4. DSM ENGINEERING PLASTICS INDIA (P) LTD. “Ashirvad” 110/12 Erandawane Lane No. 14 Income Tax Lane, Off Prabhat Road PUNE – 411 004 Phone: 020-25461075/39506264 Fax: 020-25455259 E-mail: [email protected] Web: www.dsmep.com Products: Stanyl (PA 4,6) Amite (TPE-E), Akulon (PA 6, pa 66), Amite (PBT, PET and blends)

5. GE PLASTICS INDIA 8th Floor, Gateway Towers, DLF – III, NH – 8 Gurgaon – 122 002 Phone: 0124-5018001 Fax: 0124-5018019

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E-mail: [email protected] Web: www.geplasticsindia.com Products: Polycarbonate – Lexan, PBT – Valox, PPO – Noryl.

6. GHARDA CHEMICALS LTD.

Plot No. 3525 – 26 – 27, GIDC Estate, Panoli Dist. Bharuch, Gujarat – 394 116 Phone: 02646 – 272575 /6 Fax: 02646 – 272141 E-mail: [email protected] Web: www.ghardapolymers.com Products: Polymers PEEK, PEK, PES, PSS, PPSU, PSU

7. HALDIA PETROCHEMICALS LTD. 1, Auckland Place, Kolkata – 700 017 Phone: 033-22831640/3/5 Fax: 033 – 22831654 Web: www.haldiapetrochemicals.com Products: LLDPE, HDPE, PP, Benzene, Butadiene, MS Euro III, LGP, PY Gas, Cyclopentane.

8. INDIAN OIL CORPORATION LIMITED Scope Complex, Core-2, 7 Institutional Area Lodhi Road, New Delhi – 110 003 Phone: 011-24360214 Fax: 011 – 24367548 E-mail: [email protected] Web: www.indianoilcorp.com Product: PP- 600 KTA, HDPE – 300 KTA, hdpe/lldpe – 350 KTA, MEG – 300 KTA, PTA – 553 KTA.

9. J.P. POLYMERS PVT. LTD. 3, Shram Laxmi Industrial Est. Opp. Indiana Bakery, Kanchpada, Ramchandra Lane Extn. Road. Malad (W), Mumbai – 400 064. Phone: 56998881 – 84 Fax: 56998887 E-mail: [email protected] Products: Polycarbonate (Dupont), Nylon’6, Nylon’66& PBT 9SRF), Acylic-PMMA (Sumitomo), K-Resin (Philips), Transparent ABS (Toray), POM, UHMW-PE, ABS & SAN

10. RELIANCE INDUSTRIES LTD. Maker Chambers-IV, Nariman Point, Mumabi – 400 021 Phone: 30322100 Fax: 30322199 E-mail: [email protected] Web: www.ril.com Products: Polymers, Chemicals, Fibers & Intermediates

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11. SUPREME PETROCHEM LTD.

17/18, Shah Industrial Estate, Veera Desai Road Andheri (West), Mumbai – 400 053. Phone: 26736196 – 99 Fax: 26736203 E-mail: [email protected]. on Web:

www.supremepetrochem.com Products: Crystal Polystyrene, Impact Polystyrene, ESP, Modified Polyestyrene, Flame Retardant and Antistatic Polystyrene, Color and Additive Masterbatches, Polyolefinic Compounds.

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