blow molding project report

7/30/2019 blow molding project report

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BLOW-MOULDED PLASTIC PRODUCTS

INTRODUCTION

Plastic have played a vital role in the growth phase of the Indian economy and continue to do so.

From packaging to agriculture, automobiles and electronics plastics have revolutionized all areasbecause of its functionality, economics, aesthetics and reliability. Plastic have made all productsaffordable to the Indian consumer and have helped in raising the lifestyle of the common man.Consequently, a lot more products manufactured in India today either contain plastics or arecontained in plastics.

Thermo-plastic materials like High Density polythene (HDPE), Poly-vinyl chloride (PVC) can beblow molded into containers of different sizes and shapes. Some of the common items that areproduced include buckets, mugs, jugs, & jerry cans. In bulk quantity is stored in over-head tanksmade of concrete, galvanized steel sheet and mild steel in case of very big tank. Due to heavyload of such tank, the supporting structures have to be strong and are consequently very costly.Plastic tank, being very light as well corrosion resistant and available in ready to use condition,can be installed at a nominal cost on any roof top.

PRODUCT USES

Plastic containers up to 5 liters capacity are generally used for domestic purpose. The plastic tankbetween 500-2000 ltrs. has also widening use such as water storage tank, Chemical storagetank, grain storage tank etc.

MARKET POTENTIAL

From a modest beginning in the late 1950s the plastic industry in India has acquired a great dealof versatility and sophistication. The industry has especially taken off in the post liberalization era.The new found business environment and abundant domestic availability of raw materials hasaided the double-digit growth for plastics consumption in the country.

Keeping in view the pattern of uses of jug, mug, bucket and jerry can in urban and rural areas,there is a substantial demand of about 60 to 65 lakhs numbers for assorted products. On theother hand the water storage tank for domestic purpose, it is estimated that at present about60,000 MT of plastic tank equivalent to 10, 80,000 pcs. of 1000 ltrs. capacity are requiredannually. There are 8-10 blow moulding units in the north eastern region. The production of theseunits is limited and bulk of the requirement is being met from outside sources, the leading brandsbeing Brite and Prince.

SUGGESTED CAPACITYTo assessing the proposed plant capacity due consideration is given on availability of rawmaterials, availability of electricity, skilled manpower and market. At initial stage the unit willproduce only four main items they are Jugs, Mugs, and Buckets. The suggested size of theProject and the production at different capacity utilization per annum will be as follows:

Items Installed Capacity innumbers per year

Approximateweight (in gm.)

Total weight (tones/year)

Jugs 80,000 50 4.00

Mugs 2 lakhs 40 8.00

Buckets 50,000 300 15.00

27.00

Basis:-No. of working days = 25 days per month

= 300 days per yearNo. of shifts = 1 per day.One shift = 8 hours


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INFRASTRUCTURE REQUIRED

The main Infrastructural facilities required are:

Covered shed area (processing hall/storages/office) 3000 sq. ft.

Power requirement 30 kw.Water Requirement 5000 ltrs/day

RAW MATERIALS REQUIRED AND AVAILABLITY

The major raw material required is HDPE. About 27.00 MT of HDPE is required per year. HDPEis being manufactured by a Polyofelins Industries Ltd. in Mumbai. After setting up of Gas Crackerin Assam, both HDPE and PVC will be available within the state.

SUGGESTED LOCATION

The suggested locations are:

Assam : Tinsukia, Dibrugarh, Sibsagarh & SilcharNagaland : DimapurManipur : ImphalTripura : Agartala

PRODUCTION PROCESSThe main product is manufactured on a semi automatic extrusion blow moulding machine. Themain process steps involved are:

o Plastic material in the form of granules is subjected to heat and pressurein an extruder.

o Semi-molten plastic in extruder passed through the nozzle known asparison. Adjustments have to be made in the machine to vary the wall

thickness of the parison.o Suitable parison is then inserted in a female mould and air is blown into

parison to force the moltan plastic against the sides of the mould.o The material is then cooled before removal from the mould.o The article is then trimmed to remove flashes.

PROJECT ECONOMICS

Total Capital RequirementThe total capital requirement including fixed capital and working capital is estimated at Rs lakhsas follows. Of this, the project cost comprising fixed capital and margin money on working capitalis Rs. lakhs.

A. Fixed Capital (Rs. in lakhs)

Land Own/LeaseLand Development Cost 1.00

Building /Civil works:

i) Work shed 1000 sq.ft 6.00ii) Office/Store 800 sq.ft. 4.80iii) Toilet/Bathroom/Cemented

open space, Drainage facilitiesetc. 1.50

Plant & Machinery 8.50

Misc. Fixed Assets 1.50


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B. Semi-Variable Cost:

Wages & Salaries 9.77Repair & Maintenance 0.30

Administrative overhead 0.40

Depreciation 1.50Interest 3.74

15.71

C. Sales Realization Rs. 46.40 lakhs

D. Contribution Rs. 24.37 lakhs

E. Break-Even Point B/D x 100% 64 %

Highlights:

The major highlights of the project are as follows:

Total Capital requirement Rs. 29.00 lakhsPromoters contribution Rs. 6.75 lakhs

Annual Sales realization Rs. 46.40 lakhsAnnual Operating Expenses Rs. 37.74 lakhsAnnual Profit Rs. 8.66 lakhsReturn on sales 19%Break-even point 64%No. of person employed(direct) 14

Machinery & Equipment:

The main equipment required are

Rs.in Lakhsi) Semi-Automatic extrusion blow moulding |

machine consisting: |a) 50 mm screw extruder motor, variable speed |

drive and electrical control cabinet 10 H.P | 7.40b) cross head dies(single,double and triplecores) |

and spacer |c) Mould closing and opening unit with hydraulic |

System |ii) Compressor with motor 5 H.P. |iii) Water Pump with 1 H.P. |iv) Moulds, dies, tools etc. |

Add. Taxes,insurance, transport, loading and unloadingErection and commissioning 1.10

--------------8.50

Raw Materials/Consumable (Annually):

Item Quantity Rates Annual Requirement(Rs in lakh)

1. HDPE 9.00 MT 70,000/MT 6.30

2. PVC 18 MT 42,000/ MT 7.56

3. Colours/Pigments andothers

L.S. - 0.90

TOTAL 14.76


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Manpower:

Category No.ofperson

Salary per personper month(Rs)

Monthly Salary Bill(Rs )

Production

Manager/Chemist

2 10,000 20,000

Skilled worker 2 6000 12,000

Semi-Skilled workers 3 5000 15,000

Unskilled workers 5 3000 15,000

Accountant/Store keeper 2 6000 12,000

Total Manpower Cost 74,000

Salary Bill Rs 8.88 Lakhs+ Benefits @ 10% annually i.e. Rs 0.89Total Annual Salary Bill : Rs 9.77 Lakh.

Utilities:

Power for Machinery 16 H.P.

General Lighting 10 H.P.26 H.P.

Electricity Bill (annual)

26 H.P X 0.746 KW X 6 Hrs. X 300 days X Rs. 5.50 = Rs.1.92 LakhsWater charges 2000 ltrs. per day(L.S) =Rs.0.05 LakhsFuel(furnace oil/natural gas) 50 kl. Per annum = Rs.0.70 Lakhs

Rs.2.67 Lakhs

Machinery Suppliers:1. M/s Ahura Industrial Engineers, 4 . M/s Universal Machinery Services

18, Sidhpura Industrial Estate, Tarun Compound,SV Road, Goregaon, Andheri (East)

Mumbai 400 062 Mumbai 400 069

2. M/s Boolani Engineering Corporation,402, Prabhadevi Industrial Estate,Savarkar Road,Mumbai 400 018

3. M/s Brimco Plastic Machinery,Corporation,Plot 55, Govt. Kandivli Industrial Estate,Kandivli (West),Mumbai 400 067

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FORMAT

1. Introduction.

2. About the Product

3. Market Potential

4. Suggested Capacity

5. Infrastructure requirement

6. Covered Area7. Utilities

8. Raw Materials and its availability

9. Suggested Location

10. Production process(step wise)

11. Project Economics

I. Capital Cost.II. Working Capital requirementIII. Cost of Production & ProfitabilityIV. Turn OverV. Sources of Finance

VI. Plant & MachineriesVII. Cost of Raw Materials & Consumables

VIII. Cost of Utilities & OverheadIX. Manpower requirement & wage bill

X. Profit Sales ratioXI. Rate of ReturnsXII. Break Even Point

Addresses of machinery suppliers/manufacturers

blow molding project report

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