Beruflich Dokumente
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Mott MacDonald
NEDFi
Mott MacDonald
A-20, Sector-2,
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Tel: +91 120 2543582-85
Fax: +91 120 2543562
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
Date
01
8th May
2009
th
02
5 October
2009
Originator
Checker
Approver
Description
Iram
Abdullah,
Archana
Chandrikadevi
Iram
Abdullah,
Archana
Chandrikadevi
Anisur
Rahman,
Shoma
Majumdar
Iram Abdullah
Anisur
Rahman, Iram
Abdullah
Shoma
Majumdar
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
This document has been prepared for the titled project or named part thereof and should not be relied upon or used for any
other project without an independent check being carried out as to its suitability and prior written authority of Mott
MacDonald being obtained. Mott MacDonald accepts no responsibility or liability for the consequence of this document
being used for a purpose other than the purposes for which it was commissioned. Any person using or relying on the
document for such other purpose agrees, and will by such use or reliance be taken to confirm his agreement to indemnify
Mott MacDonald for all loss or damage resulting therefrom. Mott MacDonald accepts no responsibility or liability for this
document to any party other than the person by whom it was commissioned.
To the extent that this report is based on information supplied by other parties, Mott MacDonald accepts no liability for any
loss or damage suffered by the client, whether contractual or tortious, stemming from any conclusions based on data
supplied by parties other than Mott MacDonald and used by Mott MacDonald in preparing this report.
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
List of Contents
Mott MacDonald
NEDFi
Page
Project Profiles
Pond/Canal Lining
Disposable Syringes
11
18
Geo-Textiles
24
Greenhouse Film
33
HDPE Pipes
39
Moulded Furniture
46
Pre-fill PP Polymer
52
10
Toys
58
11
Woven Sacks
64
12
70
13
77
14
83
15
88
16
94
17
Moulded Luggage
100
18
Synthetic Wood
105
19
111
20
Water Tanks
117
21
Plastic Crates
123
22
130
23
138
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
24
Leno Bags
145
25
Ropes
150
26
156
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
Project Profiles
As detailed in Volume I of the report, as part of our Scope of Work for the Study and Action Plan for
Promoting Downstream Plastic Processing and Allied Industries, we have prepared the Product
Profiles for the following products:
1. Pond/Canal Lining
2. Disposable Syringes
3. Drip Irrigation Systems
4. Geo-Textiles
5. Greenhouse Film
6. HDPE Pipes
7. Moulded Furniture
8. Pre-fill PP Polymer
9. Toys
10. Woven Sacks
11. HDPE Plastic Combs, Buckets, Mugs etc.
12. HDPE Small Bottles, Small Containers
13. HDPE Mosquito Nets
14. LLDPE Biodegradable Sheets and Carry Bags
15. PP Blow Moulded Plastic Products
16. Moulded Luggage
17. Synthetic Wood
18. LLDPE Multi-layer Film
19. Water tanks
20. Plastic Crates
21. Tarpaulins and Covers
22. BOPP Films
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NEDFi
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Pond/Canal Lining
2.1
Introduction
Mott MacDonald
NEDFi
Geo-synthetics is the collective term applied to thin, flexible, sheets of material incorporated in or
within soil to enhance its engineering performance. Applications of geo-synthetics mainly fall within
the domain of civil engineering applications. Geo-synthetics as a separate market segment have been
developed and being used at an increasing pace for a greater number of geotechnical applications. The
specific families of geo-synthetics are focused on different categories, such as, geo-textiles, geo-grid,
geo-nets, geo-membranes, geo-synthetic clay liners, geo-pipe, geo-composites and others.
Geo-membranes are a type of geo-synthetic material. They are impermeable membranes used widely
as cut-offs and liners. Until recent years, geo-membranes were used mostly as canal and pond liners.
Geo-membranes are made of various materials. Some common geo-membrane materials are Linear
Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC),
Polyurea and Polypropylene (PP). Another type of geo-membrane is bituminous geo-membrane,
which is actually a layered product of glass and bitumen-impregnated non-woven geo-textile.
In addition to UV and chemical resistance, LLDPE lining sheets exhibit a high degree of flexibility.
Greater flexibility provides increased conformance to subsistence and differential settlement. High
puncture elongation properties make LLDPE liners ideal in applications where conformances to sub
grade irregularities increase the possibility of puncture.
2.2
Market Potential
Geo-membranes are used in the lining of raw water reservoirs, effluent/ desalination/sludge plants,
artificial lagoons/lakes, evaporation pond/leaching pond/ash pond, canals/water storage
tanks/swimming pools. Liners can be made out from Linear Low Density Polyethylene (LLDPE)
fabrics.
In India, research institutions are doing a commendable work in promoting technical textiles,
particularly in the Homotech and Meditech fields but a lot remains to be done. Technical textiles have
a great future in India. Technical textiles do not need any special machinery. China is one of the
manufacturers of this machinery and has allotted almost one full Chinese hinterland solely to the
development of machinery for technical textiles. Even today, there are a few units in India especially
those located in Maharashtra, manufacturing technical textiles in various formats. Units in India, both
existing and those in the pipeline can be assured of sustained demand in various fields going by the
economic activity in India.
The Geo-technical textiles market which includes geo-textiles, geo-membranes and civil engineering
textiles was estimated to be worth Rs. 999 crores in 2005-06 in the country. This market is expected to
grow at about 10% in the coming years.
The Government of India has also extended its support by including technical textile projects under
the Textile Up-gradation Fund Scheme whereby intending units will be assured of both 10% capital
subsidy and a 5% remission in interest rates charged by banks.
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
2.3
Mott MacDonald
NEDFi
Plant Capacity
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
2.4
Polyethylene resin is pumped directly from storage silos or from totes on the floor to hoppers which
are placed above the extruder.
Hoppers feed resin into the extruder. The resin is heated to the melting point in the extruder barrel. It
is conveyed through the barrel by the rotation of a specially designed screw which, in conjunction with
heating elements along the barrel, provides consistency to produce a molten polymer stream.
The molten material is forced through a screen pack, which act as a final filter for impurities or
contaminants, and up through a die. It extrudes from the circular die as a film tube (bubble), pulled
vertically by a set of nip rollers located at the top of a cooling tower. An IBC (Internal Bubble
Cooling) unit, part of the extruder, maintains consistent bubble diameter.
At the top of the tower the bubble passes through a collapsing frame and is pulled through the nip
rollers. The material is directed back toward the ground, and continues cooling as it approaches a
winding machine. Before being taken up by the winder, the tube is split and spread to its deployable
width. The winder rolls the finished geo-membrane onto a specially made heavy-duty core.
As the geo-membrane is rolled and cut to length, thickness measurements are made across its full
width and a full roll width sample is taken for QC testing. Tests include density, uni-axial tensile
properties (most significantly break properties), carbon black content and dispersion, Oxidative
Induction Time, and Stress Cracking Resistance. All tests are not be performed on every roll, and each
test is performed at a different frequency. A sample of material is archived for reference purposes.
A QC certificate is prepared for each roll, listing the roll number, the resin lot and all test results
covering that roll. A copy of the certificate for each roll will be sent to the project engineer or the QA
consultant for each project no later than delivery of the roll to the site.
Each roll will be identified with a label showing the product, the roll number, thickness, and length.
Labels will be placed on the outside of the roll at one end and on the outside or inside of both ends of
the core. This enables the roll to be easily identified when stacked on top of or under others.
The Plant & Machinery required for this project includes Hopper, Multi-Layer Co-extrusion Blown
film plant and Cooling Tower
Following is the list of the plant and machinery suppliers:
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
1. SS Mechanical Engineers
WZ-106/56, Rajouri Garden Extn.,
New Delhi-110027
E-MAIL : mail@ssmech.com
2. ALMASS INDUSTRIES
324, Functional Industrial Estate,
Patparganj (Near Anand Vihar),
Delhi 110092
3. DYNAMIC ENGINEERS
Plot No. 35/36/37,
Shri Ram Industrial Estate,
Anup Engineering Compound, G.I.D.C.,
Odhav, Ahmedabad - 382415
2.5
The Raw Material required is LLDPE. We have considered 2% wastage of raw material.
Raw
Material Total Requirement
Requirement
(MTPA)
Cost (Rs./MT)
71124
Total
Cost
Raw
Total Cost
(Rs. Lakhs/MT)
1020
Material
725
725
The main utilities required are water and power. The total utility cost is Rs. 1.21 Lakhs per annum.
2.6
The total land required is 5000 sq.m. and the built-up area is 2000 sq.m.
2.7
Manpower Requirement
Staff
Nos
5
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
Plant Manager
Laboratory Manager
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
10
Security
30
A margin of 25% has been considered for other benefits for the staff.
2.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 335.38 Lakhs as per the table below:
S.No
Cost Head
Building
Machinery
Contingency Expenses
Land Development
Total
The means of finance considering Debt-Equity ratio of 2:1 will be:
Means of Finance
Rs in lakhs
6
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
Equity
111.78
Debt
223.60
335.38
Total
2.9
Year-2
Year-3
Year-4
Year-5
215.33
246.10
276.86
307.62
307.62
161.50
184.57
207.64
230.71
230.71
53.83
61.52
69.21
76.90
76.90
Operating Expenses
The Annual Operating expenses for the first year (70% capacity utilization) are given below:
Particulars
Expense(Rs in lakhs)
0.85
Utilities
16.74
33.54
24.23
507.83
Raw Material
12.77
Depreciation
1.15
597.10
Total
2.11
Profitability Estimates
(Rs. In Lakhs)
S. NO. PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
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Final Report- Volume II (Project Profiles)
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NEDFi
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
1000
1000
1000
1000
1000
70%
80%
90%
100%
100%
700
800
900
1000
1000
840
960
1080
1200
1200
508
580
653
725
725
24
24
24
24
24
17
17
17
17
17
21
24
27
30
30
45
45
45
45
45
616
692
767
843
843
224
268
313
357
357
34
28
21
14
24
28
31
35
35
58
55
52
48
42
12.8
12.8
12.8
12.8
12.8
153
200
248
295
302
50
66
82
98
100
102
134
166
198
203
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Loan Repayment
Maintenance Charges
TOTAL
GROSS PROFIT
Financial Expenses
Interest On Term Loan
Interest
Capital
On
Working
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
2.12
Financial Indicators
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
(Rs. In Lakhs)
Sales Realisation
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
840
960
1080
1200
1200
21
21
21
21
21
21
24
27
30
30
13
13
13
13
13
24
24
24
24
24
45
45
45
45
45
34
28
21
14
158
155
151
147
140
508
580
653
725
725
24.23
27.69
31.15
34.61
34.61
532
608
684
760
760
308
352
396
440
440
51%
44%
38%
34%
32%
Fixed Costs
Salaries
Fixed Selling Expenses
Depreciation (SLM)
Utilities (Fixed)
Admin. Overheads
Loan Repayment
Interest On L.T. Loan
Total Fixed Costs
Variable Cost
Raw Materials
Interest On Working Capital Loan
Total Variable Costs
Contribution
Breakeven In %
Average BEP
40%
The IRR for the project is 18.9%, Average ROI is 81% and average DSCR is 3.10.
(Rs. In Lakhs)
Particulars
Revenue
Year of Operation
1
840
960
1080
1200
1200
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
152.81
199.62
247.54
295.47
302.40
102.39
133.75
165.85
197.96
202.61
33.54
27.73
20.79
13.86
6.93
12.77
12.77
12.77
12.77
12.77
44.72
44.72
44.72
44.72
44.72
59%
72%
84%
96%
96%
81%
78.26
72.45
65.51
58.58
51.65
- Coverage
148.70
174.25
199.42
224.60
222.31
1.90
2.41
3.04
3.83
4.30
DSCR
Average DSCR
3.10
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Final Report- Volume II (Project Profiles)
Disposable Syringes
3.1
Introduction
Mott MacDonald
NEDFi
Disposable Syringes are made of plastic material and are used in medical and veterinary science. Due
to their availability in sterilized condition, ready to use and cost effectiveness, disposable syringes are
fast replacing the age-old glass syringes. Moreover, the horror of AIDS worldwide has almost
dispensed with the reuse of syringes and the demand of disposable syringe has increased
phenomenally. Disposable syringes are mostly injection moulded from polypropylene. Syringes are
available in sizes of 1 ml, 2ml, 5 ml, and 10 ml, in a variety of designs and consist of either two or
three components in their material of construction. The number and size of injection moulding
machines required depends upon syringe construction, number of mould cavities and annual
production.
3.2
Market Potential
Disposable syringes have already penetrated the domestic market in a significant way because of
awareness created by the Government and other non-governmental organisations on AIDS and
Hepatitis-B, thereby insisting on the use of disposable syringes instead of conventional glass type
syringes. There is lot of scope in the local market, even if we assume a usage rate of 1 syringe per
annum per person, the demand would be of the order of over 102 crores syringes per annum.
Disposable syringes have wide market potential. The age-old glass syringes are fast becoming
obsolete. Some of the units manufacturing this product in the country include:
Steryware, Faridabad; Cadila; Dispovan, Faridabad; Cadila hospital product, Ahmedabad; Surgiplus,
Ahmedabad; Transplastic Pondicherry; Disposable Mediate, Chennai; Suru Chemicals, Mumbai;
Albert David, M.P.; Manoj Surgical, Indore. Some of these units are 100% export-oriented units. In
view of the fast expanding market, the prospects of disposable syringes are very bright.
3.3
Plant Capacity
S.No.
Size
Nos.
Weight
1.
2 ml
100,000,000
2.5 g
250
2.
5 ml
55,555,556
4.5 g
250
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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
On Assam Gas Cracker Project
Final Report- Volume II (Project Profiles)
Mott MacDonald
NEDFi
The unit has been assumed to operate at 80% of its installed capacity in the first and second year, 90%
in the third year and 100% capacity from 4th year onwards of its operation.
3.4
The manufacturing process for disposable syringes consists of the following steps:
1. Moulding of the various components
2. Graduation of the moulded parts
3. Assembling
4. Sterilization
5. Quality Control Tests
6. Packaging
The two essential parts to be moulded include cylinder or barrel of the syringe and the plunger or
piston. Injection moulding is suitable for production of large quantity of similar shapes, hence the
syringes are injection moulded.
The raw material polypropylene is fed into the injection moulding machine and moulded in chilled
condition to get better clarity. The moulded syringes are then assembled with the needle in automatic
assembly machine (this profile however deals only with the production of the injection moulded
component of the syringe). The whole assembly is then sterilized in sterilization plant using ethylene
oxide. The completed syringe is then blister packed in automatic packing machine.
The product should conform to drug control specification and drug license should be obtained for
production of this item.
List of Plant & Machinery suppliers is as under:
1. DGP Windsor India Limited
5403, SIDC Industrial Estate,
Place IV, Vatva,
Ahmedabad
2. Central Machinery & Plastic Products
Lojya Estate, Mogra Raod
Andheri (E),
Mumbai - 400 069
3. M/s. Sunanda Industrial Machinery
A Division of Mafatlal
Marg Industries Ltd.
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The main raw material required for the project is Polypropylene (PP) while Polyethylene (PE) is
required for packaging. PP required would be around 525 MT at 100% capacity utilisation. Rubber
Gaskets are also required which will be outsourced.
The major utilities required are water, compressed air and power. Water required is around 590 KLPA.
and power required is 200 KW.
3.6
The total land required is 1000 sq.m. and the built-up area is 400 sq.m.
3.7
Staff
Production Manager
Accountant
Chemist
Sales Executive
Operators
Skilled Workers
Unskilled Workers
Security
Total Manpower Required
Nos
2
1
2
2
10
10
10
4
41
Project implementation will take a period of 8 months from the date of approval of the scheme. Breakup of activities with relative time for each activity is shown below:
S.No.
Nature of Activities
Period (Month)
0-1
Provisional registration
1-2
Sanction of loan
2-3
2-5
3-4
Installation of machines
4-5
Power connection
6-7
Trial run
6-7
Commencement of production
9 onwards
13
Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries
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Final Report- Volume II (Project Profiles)
3.8
Mott MacDonald
NEDFi
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been considered as part
of the Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been
considered as part of operating cost. The total Project Cost is Rs. 395.91 Lakhs as per the table below.
S.No
Cost Head
Building
Machinery
Contingency
Land Development
279.47
8.58
2.00
53.10
18.76
2.00
395.91
Total
The means of finance considering Debt-Equity ratio of 2:1 will be:
Means of Finance
Rs (in lakhs)
Equity
131.96
Debt
263.95
395.91
Total
3.9
Particulars
Years of Operation
1
Net WC
212.41
212.41
238.96
265.51
265.51
159.31
159.31
179.22
199.13
199.13
53.10
53.10
59.74
66.38
66.38
Margin Money
3.10
Operating Expenses
The Annual Operating expenses for the first year (70% capacity utilization) are given below:
S.No.
1
2
Particulars
Expenses(Rs in lakhs)
1.68
23.88
Utilities
Wages & Salaries
14
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Final Report- Volume II (Project Profiles)
3
4
5
6
7
3.11
Profitability Estimates
Mott MacDonald
NEDFi
39.59
23.90
491.61
29.93
0.23
610.82
(Rs. In Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
800
800
800
800
800
Capacity Utilization
80%
80%
90%
100%
100%
Estimated Production
640
640
720
800
800
832
832
936
1040
1040
492
492
553
615
615
Utilities
Administrative Overheads
10
10
10
10
10
Salaries
30
30
30
30
30
Sales Expenses
21
21
23
26
26
Loan Repayment
53
53
53
53
53
Maintenance Charges
0.23
0.23
0.23
0.23
0.23
TOTAL
607
607
671
735
735
GROSS PROFIT
225
225
265
305
305
40
33
25
16
24
24
27
30
30
Sub Total
63
57
51
46
38
Depreciation
29.9
29.9
29.9
29.9
29.9
131
138
183
228
237
43
46
60
75
78
88
93
123
153
158
Production/Sales
Expenses
Financial Expenses
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3.12
Mott MacDonald
NEDFi
Financial Indicators
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
832
832
936
1040
1040
Salaries
30
30
30
30
30
21
21
23
26
26
Depreciation (SLM)
30
30
30
30
30
Utilities (Fixed)
Admin. Overheads
10
10
10
10
10
Loan Repayment
53
53
53
53
53
40
33
25
16
185
178
173
167
159
Raw Materials
492
492
553
615
615
24
24
27
30
30
516
516
580
644
644
Contribution
316
316
356
396
396
Breakeven In %
58%
56%
48%
42%
40%
AVERAGE BREAK-EVEN
49%
Sales Realisation
Fixed Costs
Variable Cost
The IRR for the project is 21%, Average ROI is 60% and the average DSCR is 2.38.
(Rs. In Lakhs)
Particulars
Year of Operation
1
832
832
936
1040
1040
131.22
138.08
183.23
228.37
236.55
87.92
92.51
122.76
153.01
158.49
LT Interest
39.59
32.73
24.55
16.37
8.18
Depreciation
29.93
29.93
29.93
29.93
29.93
LT Loan Repayment
52.79
52.79
52.79
52.79
52.79
51%
51%
60%
69%
69%
Average ROI
60%
Revenue
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92.38
85.52
77.34
69.16
60.97
- Coverage
157.44
155.17
177.24
199.30
196.60
DSCR
1.70
1.81
2.29
2.88
3.22
Average DSCR
2.38
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4.1
Introduction
Mott MacDonald
NEDFi
Drip irrigation is a slow but even application of low pressure water to soil and plants using plastic
tubing placed directly at the root zone of the plants. Drip irrigation can help use water efficiently. A
well-designed drip irrigation system loses practically no water to runoff, deep percolation, or
evaporation. Drip irrigation reduces water contact with crop leaves, stems, and fruit. Thus, conditions
may be less favourable for the onset of diseases. Irrigation scheduling can be managed precisely to
meet crop demands, holding the promise of increased yield and quality.
Agricultural chemicals can be applied more efficiently with drip irrigation. Since only the crop root
zone is irrigated, nitrogen present in the soil is less subject to leaching losses, and the applied
fertilizers can be used more efficiently. In the case of insecticides, lesser products might be needed.
A wide range of components and system design options is available. Drip tape varies greatly in its
specifications, depending on the manufacturer and its use. The distribution system, valves, and pumps
must match the supply requirements of the tape. Tape, depth of tape placement, distance between
tapes, emitter spacing and flow, and irrigation management systems must be chosen carefully based on
crop water requirements and the soil properties. Drip tubing rather than drip tape is usually used for
perennial crops such as grapes or poplar trees. Drip irrigation system delivers water to the crop using a
network of mainlines, sub-mains and lateral lines with emission points spaced along their lengths.
Each dripper/emitter orifice supplies a measured, precisely controlled uniform application of water,
nutrients, and other required growth substances directly into the root zone of the plant.
Water and nutrients enter the soil from the emitters, moving into the root zone of the plants through
the combined forces of gravity and capillary. In this way, the plants withdrawal of moisture and
nutrients are replenished almost immediately, ensuring that the plant never suffers from water stress,
thus enhancing quality, its ability to achieve optimum growth and high yield.
4.2
Market Potential
The use of drip irrigation is rapidly increasing around the world, and this trend is expected to continue
in the foreseeable future. With increasing demand on limited water resources and the need to minimise
environmental consequences of irrigation, drip irrigation technology offers many advantages. The use
of drip irrigation in India has increased rapidly from the time of initial testing at Tamil Nadu
University in Coimbatore in 1970 to all-India coverage of 55,000 hectares by 1992 and is now
estimated to be 225,000 hectares. Studies of comparative crop yield and water use for surface and
conventional drip irrigation of different crops carried out at agricultural universities in India have
consistently found water savings of 30-60% and yield increase of 20-40 % favouring drip irrigation
over surface irrigation methods. The Indian Committee on Irrigation and Drainage estimates the
potential for drip irrigation in India of 10.5 million hectares.
4.3
Plant Capacity
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Annual Production capacity: 600 TPA HDPE pipes and 400 TPA of LLDPE valves and
fittings.
The unit has been assumed to operate at 75%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
4.4
A process for making low cost drip irrigation lines comprises molding a drip emitter having an
elongated labyrinth channel formed in the depth of the emitter body. Emitters of other configurations
also can be used in the process. A plastic film is extruded and passed through a film die with an air
injection tube at one end forming a plastic film bubble. At the bottom of the extruded plastic film
bubble, a pair of pressure rolls join opposite faces of the bubble to form a continuous unitary extruded
plastic film sheet. The emitters are moved in series towards the nip of the pressure rolls and are
inserted in sequence with their labyrinth faces facing toward the hot bubble. The emitters are bonded
to the extruded film sheet using the heat of extrusion, and the external sheet forms one face of the
labyrinth channel through each emitter. After laminating the emitter to the extruded film, an exit hole
is formed through the film to each emitter and the film is then wrapped and bead sealed to form a
continuous flexible drip irrigation tube with the emitters spaced apart along the inside of the tube. The
process can be used for making multiple drip irrigation lines in parallel along a single extruded plastic
film sheet.
The Machinery required is as under:
Machinery cost of Drip Irrigation project
Cost in Rs.
5,75,000/9,00,000/
Machinery Suppliers:
1. SS Mechanical Engineers,
WZ-106/56, Rajouri Garden Extn.,
New Delhi-110027
E-MAIL : mail@ssmech.com
2. Blenzor ( India )
1-A,First Floor,
Sharda Mansion,
Dr.Babasaheb Ambedkar Road,
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The raw material required for the project is HDPE for making pipes and LLDPE for the valves and
fittings. The raw material required would be around 612 MT of HDPE and 408 MT of LLDPE at
100% capacity utilisation.
The major utilities required are water and power. Water required is around 460 KLPA. and power
required is 150 KW.
4.6
The total land required is 1500 sq.m. with the built-up area of 600 sq.m.
4.7
Manpower Requirement
Staff
Nos
Plant Manager
Maintenance Manager
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
10
Security
32
4.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 190.49 Lakhs as per the table below:
S.No
Cost Head
Building
Machinery
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Contingency Expenses
Land Development
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9.07
3.00
190.49
Total
The means of finance considering Debt-Equity ratio of 2:1 will be:
Means of Finance
Rs in lakhs
Equity
63.49
Debt
127.00
190.49
Total
4.9
Years of Operation
1
Net WC
191.70
204.48
230.03
255.59
255.59
143.77
153.36
172.53
191.70
191.70
Margin Money
47.92
51.12
57.51
63.90
63.90
4.10
Operating Expenses
The Annual Operating expenses for the first year (75% capacity utilization) are given below:
Particulars
Expense(Rs in lakhs)
0.64
Utilities
17.94
19.05
21.57
528.20
Raw Material
9.46
Depreciation
0.35
Maintenance Charges
597.21
Total
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4.11
Mott MacDonald
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Profitability Estimates
(Rs. In Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
600
600
600
600
600
400
400
400
400
400
Capacity Utilization
75%
80%
90%
100%
100%
450
480
540
600
600
300
320
360
400
400
720
768
864
960
960
528
563
634
704
704
Utilities
Administrative Overheads
10
10
10
10
10
Salaries
18
18
18
18
18
Sales Expenses
18
19
22
24
24
Loan Repayment
25
25
25
25
25
Maintenance Charges
0.35
0.35
0.35
0.35
0.35
TOTAL
600
637
709
782
782
GROSS PROFIT
120
131
155
178
178
19
16
12
22
23
26
29
29
Sub Total
41
39
38
37
33
Depreciation
9.5
9.5
9.5
9.5
9.5
70
83
107
132
136
23
27
35
43
45
47
56
72
88
91
Yr -4
Yr-5
Production/Sales
Expenses
Raw Material Consumption
Financial Expenses
4.12
Financial Indicators
Yr-2
Yr -3
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720
768
864
960
960
Salaries
22
22
22
22
22
18
19
22
24
24
Depreciation (SLM)
Utilities (Fixed)
Admin. Overheads
10
10
10
10
10
Loan Repayment
25
25
25
25
25
19
16
12
105
102
101
99
95
Raw Materials
528
563
634
704
704
22
23
26
29
29
550
586
660
733
733
Contribution
170
182
204
227
227
Breakeven In %
61%
56%
49%
44%
42%
Average Break-Even
51%
Sales Realisation
Fixed Costs
Variable Costs
The IRR for the project is 30.8%, Average ROI is 67% and the average DSCR is 2.58.
Particulars
Year of Operation
(Rs. In Lakhs)
1
720
2
768
3
864
4
960
5
960
69.79
83.25
107.48
131.71
135.65
46.76
55.77
72.01
88.25
90.89
LT Interest
19.05
15.75
11.81
7.87
3.94
Depreciation
9.46
9.46
9.46
9.46
9.46
LT Loan Repayment
25.40
25.40
25.40
25.40
25.40
52%
57%
68%
78%
78%
Average ROI
67%
Revenue
44.45
41.15
37.21
33.27
29.34
- Coverage
75.27
80.98
93.28
105.58
104.28
DSCR
1.69
1.97
2.51
3.17
3.55
Average DSCR
2.58
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Geo-Textiles
5.1
Introduction
Mott MacDonald
NEDFi
Geo-synthetics is the collective term applied to thin, flexible, sheets of material incorporated in or
within soil to enhance its engineering performance. Applications of geo-synthetics mainly fall within
the domain of civil engineering applications. Geo-synthetics as a separate market segment has been
developed and being used at an increasing pace for a greater number of geotechnical applications. The
specific families of geo-synthetics are focused on different categories such as, geo-textiles, geo-grid,
geo-nets, geo-membranes, geo-synthetic clay liners, geo-pipe, geo-composites and others.
Geo-textiles form one of the two largest groups of geo-synthetics, which are textile fabrics (woven,
non-woven, knitted, braided, etc) specially designed to be used as construction material in conjunction
with other geotechnical materials such as soil and rock in applications of civil engineering nature.
There are at least hundred specific application areas for geo-textiles; however, the fabric always
performs at least one of five discrete functions, namely separation, reinforcement, filtration, drainage
and protection.
5.2
Market Potential
The current major use of geo-textiles is within the foundation components or load-supporting part of a
civil engineering structure. More recently geo-textiles have been used to enhance tensile properties of
civil engineering materials themselves, such as road surface and sub surfaces in both construction of
new and renovation of old highways, mattresses for erosion control etc.
Basically, all available geo-textiles can be broadly classified on the basis of manufacturing techniques
namely woven, non-woven and knitting. Whereas the initial demand of geo-textiles were met by
woven fabrics, the spurt in demand of geo-textiles was observed only on introduction of non-woven
geo-textiles in the market because they are more flexible and deformable.
According to a Study conducted by Freedonia Group, Spunbonded nonwovens would remain the
dominant product, accounting for half of the total volume of non-wovens in 2009. Approximately 65%
of hygiene product components, which include coverstocks, backsheet use spunbond nonwovens.
The total non-woven production in India was estimated to be around 58,000 tons in 2005 out which
14%, i.e 8000 tons was made through spunbond technology (as shown in the chart below) which was
consumed as durables for manufacturing of interlinings, carpets and geotextiles.
The two major producers of PP non woven spunbond fabric are:
Unimin India Ltd., Mumbai
PVD Plast Mould Industries Ltd., Mumbai (now known as Fiberworld (India) Limited)
These units are 100% EOU, having present production capacity of 3,000 TPA and 3,500 TPA
respectively.
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Hence, at present the entire requirement of spunbond fabric for personal hygiene products and
healthcare textiles is met through imports from countries like China, Brazil, Korea and Taiwan.
5.3
Plant Capacity
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
5.4
One of the techniques to manufacture non-woven fabric is Spun-bonding. Spun-bond fabrics are
produced by depositing extruded, spun filaments onto a collecting belt in a uniform random manner
followed by bonding the fibers.
The spun-bond fabric consumption is divided into two segments viz disposables and durables. The
disposables consume about 55-65% of the spun-bond fabric and the rest 35-45% is consumed in
making durables. Geo-textiles fall under the category of durables.
For production of high quality, needle-punched, staple fibre geo-textiles, continuous filaments of
polypropylene are extruded on a fibre extrusion line. Fibres are then cut, opened and laid into a web.
They then pass through thousands of needles that penetrate and orient the fibres, locking them with
one another. After this they are heat-set and rolled to create non-woven geo-textiles.
This manufacturing process is detailed out further as below:
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The spunbond nonwoven process consists of several integrated steps for conversion of polymer or
resin chips into finished fabric. The major steps of the process are:
Polymer Feed - Polymer feedstock in pellet or powder form is conveyed from storage bins or silos to
the feeder section of an extruder.
Extruder - Polymer feedstock is mixed with stabilizers, additives, color master-batch, resin modifiers,
or other additives. This blend of raw materials is melted within the extruder barrel.
Fiber Spinning - The molten polymer mix is pumped through a heated conduit to a resin filter system
and then to a distributor section that leads to the spinnerette units. The spinnerette usually consists of a
perforated plate arranged across the width of the line. The resin is forced through the many small holes
in the spinnerette plate to form continuous filaments.
Quenching / Attenuation Zone - As the filaments emerge through the spinnerette holes, they are
directed downward into quench chambers or chimneys. As the filaments travel through these
chambers, cool air is directed across the filament bundle to cool the molten filaments sufficiently to
cause solidification. The filaments are then led further downward into a tapered conduit by an
airsteam. A second stream of high velocity air is directed parallel to the direction of the filaments,
causing an accelerated and accompanying attenuation or stretching of the individual filaments. This
mechanical stretching results in increased orientation of the polymer chains making up the continuous
filament. Such orientation leads to increased filament strength, along with modification of other
filament properties, including the filament denier or thickness.
Web Forming - The filaments are deposited in a random manner on a moving, porous forming belt. A
vacuum under the belt assists in forming the filament web on the forming belt and in removing the air
used in the extrusion / orientation operation. In some processes, an electrostatic charge is placed on the
filament bundle to ensure spreading and separation of individual filaments. In other processes,
deflector plates are used to lay down the filament sheet in a random manner on the forming belt.
Bonding -The continuous filament web is delivered to a bonding section, where one of several
bonding methods can be used to bond the loose filaments into a strong, integrated fabric.
Slitting / Winding - The bonded fabric encounters a slitting section where the two edges are trimmed
to eliminate the non-uniform, rough edge created during the manufacturing step. In some operations,
the fabric may also be further slit into precise, smaller widths to provide finished rolls of precise
dimension. Following slitting, the fabric is wound onto a larger roll, either a full width roll or a series
of narrow slit rolls. From this point, the fabric rolls are ready for wrapping and shipping.
The machinery required is as under:
S. No.
Machinery
Product Output
Number required
Leftover opener
50-80 kg/hr
Fine-Opener
30-180 kg/hr
Feeder
60-180 kg/hr
Carding Machine
60-180 kg/hr
Cross Lapper
20-40 m/min
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Pre-Needle machine
1-6 m/min
Main-Needle M/C
1-6 m/min
12
1-15m/min
Geo-textile machinery is not manufactured in large scale in India; hence we have considered the
quotations from Chinese manufacturers. List of Plant & Machinery suppliers is as under:
1. CNBM International Corporation, China
2. Changshu Weicheng Non-woven Equipment Co. Ltd, China
3. Jiangsu Yingyang Non-woven Machinery Co. Ltd, China
We have considered the production line from Changshu Weicheng. The production line produces wide
geo-textiles by needle-punching method, which are widely used in construction fields, such as separate
layer (road foundation & railway foundation, airport foundation, asphalt foundation)protection layer
(reservoirs, channels & tunnels, river and sea bank), filtration layer (drainage)reinforced layer (soil
stabilization, road surface facility), etc.
5.5
The major raw material required for the project is Polypropylene. The raw material required would be
around 2100 MT at 100% capacity utilisation.
The major utilities required are water and power. Water required is around 850 KLPA and power
requirement is 700 KW.
5.6
The total land required is 10000 sq.m. and the built-up area is 4000 sq.m.
5.7
Manpower Requirement
The organizational structure of the geo-textiles plant is illustrated in Figure 1. The Plant Manager, who
has overall responsibility for quality, ensures that all quality requirements are met. This includes
incoming inspection, process control and product labelling. The Plant Manager is further responsible
for approving raw materials and testing finished products according to ASTM or other industry
standards.
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Staff
Mott MacDonald
NEDFi
Nos
V.P. (Engineering)
Plant Manager
Maintenance Manager
Laboratory Manager
Production Manager
Accountant
Supervisors
Skilled Workers
Unskilled Workers
Security
Total Manpower Required
1
1
1
1
1
2
4
25
20
3
59
Figure 2 shows the manufacturing quality system under which all geo-textile products should be
manufactured.
5.8
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Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 959.68 Lakhs as detailed below:
S.No.
1
2
3
4
5
6
Cost Head
Building
Machinery
424.98
47.63
2.00
119.37
Contingency Expenses
45.70
Land Development
7
Total Cost
20.00
959.68
Rs in lakhs
Equity
319.86
Debt
639.82
959.68
Total
5.9
Particulars
Years of Operation
1
Net WC
477.48
545.70
613.91
682.12
682.12
358.11
409.27
460.43
511.59
511.59
Margin Money
119.37
136.42
153.48
170.53
170.53
5.10
Operating Expenses
The Annual Operating expenses for the first year (70% capacity utilization) are given below:
S.No.
1
2
3
4
Particulars
Utilities
Wages & Salaries
Interest on term loan
Interest on Bank Finance for Working Capital
Expense(Rs in lakhs)
5.82
32.94
95.97
53.72
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5
6
7
Total
Raw Material
Depreciation
Maintenance Charge
5.11
Profitability Estimates
Mott MacDonald
NEDFi
1051.09
39.38
2.30
1281.23
(Rs.in Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
2000
2000
2000
2000
2000
Capacity Utilization
70%
80%
90%
100%
100%
Estimated Production
1400
1600
1800
2000
2000
1890
2160
2430
2700
2700
1051
1201
1351
1502
1502
Utilities
Administrative Overheads
27
27
27
27
27
Salaries
33
33
33
33
33
Sales Expenses
47
54
61
68
68
Loan Repayment
128
128
128
128
128
TOTAL
1294
1451
1608
1765
1765
GROSS PROFIT
596
709
822
935
935
96
79
60
40
20
54
61
69
77
77
Sub Total
150
141
129
116
97
Depreciation
39.4
39.4
39.4
39.4
39.4
407
529
654
779
799
134
174
216
257
264
272
354
438
522
535
Production/Sales
Expenses
Maintenance Charges
Financial Expenses
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5.12
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NEDFi
Financial Indicators
Yr -1
1890
Yr-2
2160
Yr -3
2430
Yr -4
2700
Yr-5
2700
Salaries
41
41
41
41
41
47
54
61
68
68
Depreciation (SLM)
39
39
39
39
39
Utilities (Fixed)
Admin. Overheads
27
27
27
27
27
Loan Repayment
128
128
128
128
128
96
79
60
40
20
385
375
362
349
329
Raw Materials
1051
1201
1351
1502
1502
53.72
61.39
69.06
76.74
76.74
1105
1263
1420
1578
1578
Contribution
785
897
1,010
1,122
1,122
Breakeven In %
49%
42%
36%
31%
29%
Average BEP
37%
Sales Realisation
Fixed Costs
Variable Cost
The IRR for the project is 23.2%, Average ROI is 76% and the average DSCR is 2.91.
(Rs. In Lakhs)
Particulars
Year of Operation
1
1890
2
2160
3
2430
4
2700
5
2700
406.55
528.61
653.86
779.12
798.95
272.39
354.17
438.09
522.01
535.30
LT Interest
95.97
79.34
59.50
39.67
19.83
Depreciation
39.38
39.38
39.38
39.38
39.38
LT Loan Repayment
127.96
127.96
127.96
127.96
127.96
56%
67%
78%
89%
89%
Average ROI
76%
207.30
187.47
167.63
147.80
Revenue
223.94
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407.75
472.89
536.98
601.06
594.52
DSCR
1.82
2.28
2.86
3.59
4.02
Average DSCR
2.91
- Coverage
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Greenhouse Film
6.1
Introduction
Mott MacDonald
NEDFi
A greenhouse is a structure with a glass or plastic roof (frequently glass or plastic walls); it heats up
because incoming solar radiation from the sun warms plants, soil, and other things inside the building.
Air warmed by the heat from hot interior surfaces is retained in the building by the roof and wall.
These structures range in size from small sheds to very large buildings.
Greenhouses can be divided into glass greenhouses and plastic greenhouses. Plastics mostly used are
PE film and multi-wall sheet in Poly Carbonate or Acrylic Glass. The use of polymers composite as
cover materials for greenhouse or agricultural films, is growing globally because it can improve
product quality and yield by protecting plants from extreme weather changes, optimizing growth
conditions, extending the growing season and reducing plant diseases. While the films are being made,
various additives and stabilizing agents are employed to provide desired applications including
prevention of thermal oxidation, discoloration in the melt process and improvement of long term heat
and light stability.
6.2
Market Potential
At present the use of greenhouses in agriculture is growing because greenhouses protect crops from
too much heat or cold, shield plants from dust storms and blizzards, and help to keep out pests. Light
and temperature control allows greenhouses to turn barren land into arable land. They are being used
for growing flowers, vegetables, fruits, and tobacco plants.
Their usage and hence demand for LLDPE films for the same is expected to grow because cultivating
in a greenhouse has distinctive advantages like the yield increases by 5 - 15 times or even more, there
is a reduction in labour cost, less fertilizer is required, lesser requirement of water requirement, less
chances of disease attack, thus reduction in disease control cost, they help in cultivating even in
problematic topography, climate and soil conditions, they are easy to operate, maintain & control.
Greenhouse film is mostly produced by LDPE and LLDPE blending. It can also be co-extruded
composite film of LLDPE, LDPE and EVA.
6.3
Plant Capacity
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
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6.4
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NEDFi
These films are made by a process known as co-extrusion blown film process, in which plastic pellets
or flakes and additives, if any, are premixed, melted into an extruder, propelled into a die which causes
the molten material to flow around a mandrel and emerge through a ring-shaped opening in the form
of a tube. A die with multiple flow channels is used in co-extrusion to form multiple individual layers.
Air is introduced into the tube causing it to expand and bubble. The air is contained in the bubble by
the die at one end and by nip rollers at the other end. Even air pressure is maintained to ensure uniform
thickness of the bubble. Airflow around the outside of the bubble cools and solidifies the melt. The
bubble is stretched to orient the plastic and improve its strength and properties. After solidification, the
film bubble moves into a set of pinch rollers to flatten and roll the material onto a winder.
The machinery required is a co-extrusion blown film plant.
Machinery Suppliers:
1.
SS Mechanical Engineers
WZ-106/56, Rajouri Garden Extn.,
New Delhi-110027
E-MAIL : mail@ssmech.com
2.
The main raw material required is LLDPE. Raw Material requirement at 100% capacity is 1020 MT.
Utilities required are power and water. Around 418 KL of water and 100 KW of power are required.
6.6
The total land required is 2000 sq.m. and the built-up area is 800 sq.m.
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6.7
Mott MacDonald
NEDFi
Manpower Requirement
Staff
Nos
Plant Manager
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
10
Security
29
6.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 220.36 Lakhs as detailed in the table below:
S.No
Cost Head
Building
Machinery
Contingency Expenses
Land Development
Total
The means of finance considering Debt-Equity ratio of 2:1 will be:
Means of Finance
Rs in lakhs
Equity
73.45
Debt
146.91
220.36
Total
6.9
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(Rs. In Lakhs)
Particulars
Years of Operation
Net WC
1
181.52
2
207.46
3
233.39
4
259.32
5
259.32
136.14
155.59
175.04
194.49
194.49
Margin Money
45.38
51.86
58.35
64.83
64.83
6.10
Operating Expenses
The Annual Operating expenses for the first year (70% capacity utilization) are given below:
S.No.
1
2
3
4
5
6
7
Total
Particulars
Utilities
Wages & Salaries
Interest on term loan
Interest on Bank Finance for Working Capital
Raw Material
Depreciation
Maintenance Charge
6.11
Profitability Estimates
Expense(Rs in lakhs)
0.85
15.06
22.04
20.42
507.83
9.61
0.46
576.26
(Rs.in Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
1000
1000
1000
1000
1000
Capacity Utilization
70%
80%
90%
100%
100%
Estimated Production
700
800
900
1000
1000
679
776
873
970
970
508
580
653
725
725
Utilities
Administrative Overheads
10
10
10
10
10
Salaries
15
15
15
15
15
Sales Expenses
17
19
22
24
24
Loan Repayment
29
29
29
29
29
0.46
0.46
0.46
0.46
0.46
Production/Sales
Expenses
Maintenance Charges
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TOTAL
580
655
730
805
805
GROSS PROFIT
99
121
143
165
165
22
18
14
20
23
26
29
29
Sub Total
42
42
40
38
34
Depreciation
9.6
9.6
9.6
9.6
9.6
47
70
93
117
121
15
23
31
39
40
31
47
62
78
81
Financial Expenses
6.12
Financial Indicators
Yr-2
Yr -3
Yr -4
Yr-5
679
776
873
970
970
Salaries
19
19
19
19
19
17
19
22
24
24
Depreciation (SLM)
10
10
10
10
10
Utilities (Fixed)
Admin. Overheads
10
10
10
10
10
Loan Repayment
29
29
29
29
29
22
18
14
107
106
104
102
97
508
580
653
725
725
20.42
23.34
26.26
29.17
29.17
528
604
679
755
755
Contribution
151
172
194
215
215
Breakeven In %
71%
62%
54%
47%
45%
Average Break-Even
56%
Sales Realisation
Fixed Costs
Variable Cost
Raw Materials
Interest On Working Capital Loan
The IRR for the project is 21.2%, Average ROI is 51% and the Average DSCR is 2.02.
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(Rs. In Lakhs)
Particulars
Year of Operation
1
679
776
873
970
970
46.68
69.61
93.28
116.94
121.50
31.28
46.64
62.50
78.35
81.40
LT Interest
22.04
18.22
13.66
9.11
4.55
Depreciation
9.61
9.61
9.61
9.61
9.61
LT Loan Repayment
29.38
29.38
29.38
29.38
29.38
36%
44%
53%
62%
62%
Average ROI
51%
Revenue
51.42
47.60
43.05
38.49
33.94
- Coverage
62.92
74.47
85.77
97.07
95.57
DSCR
1.22
1.56
1.99
2.52
2.82
Average DSCR
2.02
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HDPE Pipes
7.1
Introduction
Mott MacDonald
NEDFi
Pipes made from Polyethylene (PE) are a cost effective solution to a number of piping problems in
Metropolitan, Municipal, Industrial, Underwater, Mining, Landfill Gas extraction, Cable duct and
agricultural applications. HDPE Pipes are manufactured from High Density Polyethylene. The pipes
are better substitutes for costly Metallic and Non-Metallic pipes like CI, GI, AC, RCC & MS.
HDPE Pipes are generally made black in colour by addition of Carbon Black to protect from ageing
& degradation due to ultraviolet sunrays. They have wide application areas and can be used for
potable water supply, irrigation/agriculture, gas transmission, industrial effluents, telephone cable
ducts, sewerage & drainage, sprinkler system, slurry transportation, chemical industries, tube-wells
etc.
They have the lowest repair frequency per kilometre of pipe per year compared to all other pipe
materials used for urban water and gas distribution. HDPE pipe is actually a superior type
product for many applications. The superiority of HDPE pipes can be seen from the
following properties:
Light Weight - One sixth of the weight of steel. Low specific gravity giving an outstanding
light weight product for easy transportation, handling, fitting etc.
Smooth bore provides less head loss. Flow resistance is approximately 30% less than that of
conventional pipes, permitting the use of a smaller bore pipe for a given rate of flow.
Fire resistant
Easy to install.
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7.2
Mott MacDonald
NEDFi
Market Potential
There are 2-3 HDPE pipes manufacturers in the NER, with a total consumption of about 20-30 TPM
HDPE, of which about 50% is consumed in Assam. The HDPE pipes are mainly used in household
and agricultural sector. HDPE pipes are used in drip irrigation systems as well as for water and
sewerage. They have a large market potential in the North-East because they can replace the PVC and
GI pipes that are currently and most widely used in the region.
7.3
Plant Capacity
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
7.4
When HDPE pipes are made, HDPE granules or pellets are generally fed into a hopper where they are
melted down into HDPE resin. The HDPE resin is then carried through a cylindrical barrel with a
rotating screw and pumped through to the extrusion point, where it is pushed through a circular die
into yet another cylindrical barrel containing a die, an annular channel of clear space where the pipe
will be formed, and an outer shell known as a mandrel. The HDPE is pushed along this die and formed
into the shape of the pipe. The pipe is then drawn off at the end of the extrusion moulding barrel,
cooled and cut to length.
The process is fairly noisy, and needs to be overseen by experienced technicians in order that high
quality HDPE pipes emerge. This is especially true in case HDPE pipes are created from reprocessed
HDPE. Problems can emerge if the HDPE gets too hot when melted, or if friction in the screw is too
great. If the temperature rises too high, then the molecular structure of the HDPE can begin to break
down, reprocessed HDPE is more susceptible to this as it has already undergone one heating process,
which predisposes it to later weaknesses. If the molecular structure of the HDPE begins to fail, then
the structural soundness of the pipe gets compromised.
The machinery required for manufacturing HDPE pipes is as under:
1. Pipe Extrusion Plant (complete with hopper, barrels and dies)
2. Cutter
List of Machinery Suppliers:
1. Green Hose Extrusion Engineering
B-904, Akshardham Towers,
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The raw material required is HDPE. Raw Material requirement at 100% capacity is 612 MT. Utilities
required are power and water. Around 432 KLPA of water and 75 KW of power are required.
7.6
The total land required is 5000 sq.m. and the built-up area is 2000 sq.m.
7.7
Manpower Requirement
Staff
Nos
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
10
Security
30
7.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 255.95 Lakhs as per the table below:
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S.No
Cost Head
Building
Machinery
Contingency Expenses
Land Development
Mott MacDonald
NEDFi
Total
The means of finance considering Debt-Equity Ratio of 2:1 is:
Means of Finance
Equity
Debt
Total
7.9
Rs in lakhs
85.31
170.64
255.95
Particulars
Years of Operation
1
Net WC
114.72
131.11
147.50
163.89
163.89
86.04
98.33
110.62
122.91
122.91
Margin Money
28.68
32.78
36.87
40.97
40.97
7.10
Operating Expenses
The Annual Operating expenses for the first year (70% capacity utilization) are given below:
S.No.
1
2
3
4
5
6
7
Total
Particulars
Raw materials
Utilities
Wages & Salaries
Interest on term loan
Interest on Bank Finance for Working Capital
Depreciation
Maintenance Charges
Expense(Rs in lakhs)
447.20
0.64
14.34
25.60
12.91
9.17
1.15
511
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7.11
Mott MacDonald
NEDFi
Profitability Estimates
(Rs.in Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
600
600
600
600
600
Capacity Utilization
70%
80%
90%
100%
100%
Estimated Production
420
480
540
600
600
567
648
729
810
810
313
358
402
447
447
Utilities
Administrative Overheads
16
16
16
16
16
Salaries
18
18
18
18
18
Sales Expenses
14
16
18
20
20
Loan Repayment
34
34
34
34
34
Maintenance Charges
TOTAL
397
444
491
537
537
GROSS PROFIT
Financial Expenses
170
204
238
273
273
26
21
16
11
13
15
17
18
18
Sub Total
39
36
32
29
24
Depreciation
9.2
9.2
9.2
9.2
9.2
122
159
197
234
240
40
52
65
77
79
82
106
132
157
161
Production/Sales
Expenses
7.12
Financial Indicators
Sales Realisation
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
567
648
729
810
810
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Fixed Costs
Salaries
18
18
18
18
18
14
16
18
20
20
Depreciation (SLM)
Utilities (Fixed)
Admin. Overheads
16
16
16
16
16
Loan Repayment
34
34
34
34
34
26
21
16
11
118
115
112
109
104
313
358
402
447
447
12.91
14.75
16.59
18.44
18.44
326
373
419
466
466
Contribution
241
275
310
344
344
Breakeven In %
49%
42%
36%
32%
30%
Average Break-Even
38%
Variable Cost
Raw Materials
Interest On Working Capital Loan
The IRR for the project is 20.3%, Average ROI is 84% and the average DSCR is 3.19.
(Rs. In Lakhs)
Particulars
Year of Operation
1
567
648
729
810
810
122.07
158.92
196.62
234.32
239.61
81.79
106.47
131.73
156.99
160.54
LT Interest
25.60
21.16
15.87
10.58
5.29
Depreciation
9.17
9.17
9.17
9.17
9.17
LT Loan Repayment
34.13
34.13
34.13
34.13
34.13
61%
74%
87%
99%
99%
Average ROI
84%
Revenue
59.73
55.29
50.00
44.71
39.42
- Coverage
116.55
136.80
156.77
176.74
174.99
1.95
2.47
3.14
3.95
4.44
DSCR
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Average DSCR
Mott MacDonald
NEDFi
3.19
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Moulded Furniture
8.1
Introduction
Mott MacDonald
NEDFi
In recent years, furniture is being manufactured using different polymers in place of traditional
material like wood, metal etc. The furniture is manufactured using Injection Moulding Technique. The
main polymer used for manufacturing is Polypropylene although HDPE is also used. Injection
Moulded furniture is easy to handle, has long life and can be attractively coloured and decorated in a
single step manufacturing process only.
There are many variants of injection moulded furniture like chairs either as a single moulded unit or
with metal leg supports in numerous designs, coffee tables, table tops, multi-purpose racks, drawer and
drawer fittings, trolleys, specially designed safe furniture for children, furniture for open pavilions,
auditoria, airport/railway stations etc.
In this profile, the furniture considered is stackable one shot plastic chairs with no metal or any other
base material.
8.2
Market Potential
There are about 550-600 manufacturers of moulded furniture in India, of which about 7-8
manufacturers are based in North-Eastern region. Most of the manufacturers in the region are engaged
in manufacturing of different varieties of chairs such as plastic foldable chairs, baby chairs and garden
chairs. Other manufactured products include tepoys, stools and tables.
Although plastic furniture has the advantage of increased flexibility and ease of handling, the industry
faces a direct competition from traditional wooden furniture and steel furniture. Moreover, the plastic
furniture market is driven by reprocessed/recycled polymer, which offers significant price advantage
over virgin polymer, PP (IM grade). The total requirement of virgin PP in this segment falls in the
range of about 400 TPM, of which about 250-270 TPM is consumed in Assam. The
reprocessed/recycled PP accounts for an additional 400 TPM. This is indicative of the increased
presence of cost effective reprocessed moulded furniture in the NER markets. The past growth of this
industry has been about 15-20%.
8.3
Plant Capacity
The unit has been assumed to operate at 80%, 85% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from fourth year onwards of its operation.
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8.4
Mott MacDonald
NEDFi
The manufacturing process of injection moulded furniture is very simple. The PP granules are fed via
a regulated hopper into a homogenous molten mass by application of heat and shearing action of a
continuously rotating extruded screw which also pushes the plastic melt forward. The melt gets
collected at the forward end of the extruder cylinder and is pushed into the mould cavity by the screw
which now acts as a hydraulic piston.
The mould is kept at a pre-specified temperature and once injected, the plastic melt is held under high
pressure to ensure that the material reaches all ends of the mould. In furniture moulding, moulds used
have very large depth. A locking force of an order of 1500 tonnes or so is essential to reduce the
wastage. The mould is opened after the plastic melt has solidified sufficiently and the moulded item is
ejected by means of ejector pins or plates. During the cooling cycle in the mould, the extruder screw
prepares another batch of plastic melt, ready to be injected, and thus, the cycle goes on continuously.
The moulded articles usually dont require any finishing operation, except for removal of excess
material, if any. Otherwise, after visual inspection, they are kept for curing for about 40-50 hours and
then despatched.
The machinery required for the plant is Hopper, Injection Moulding Machine, Moulds and Cooling
Plant.
The Plant and machinery Suppliers include:
1. Anu Engineering Works
253/260, 1st Main, Vinayaka Nagar,
Kamakshipalya Industrial Area
Mumbai- 560079
2. Ace Automation,
228/1, M. G. R. Street,
Sivanandapuram, Saravanampatti
Coimbatore - 641 035
3. G.S Azad Industry
A-31, Nariana Industrial Area Phase I
New Delhi - 110 028
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8.5
Mott MacDonald
NEDFi
The raw material used, include PP (Injection Moulded Grade), which is the most popularly used raw
material for injection moulded furniture. Apart from PP, some additives and stabilizers are also
required.
Major utilities required are electricity, cooling water and compressed air.
8.6
The total land required is 1000 sq.m. and the built-up area is 400 sq. m.
8.7
Manpower Requirement
Staff
Nos
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
15
Security
34
8.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The Total Project Cost is Rs. 295.14 Lakhs with the following break-up:
S.No
Cost Head
Building
Machinery
Contingency Expenses
Land Development
Total
The means of finance considering Debt-Equity Ratio of 2:1 will be:
Means of Finance
Rs in lakhs
48
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NEDFi
Equity
98.37
Debt
196.77
295.14
Total
8.9
Years of Operation
Net WC
1
230.85
2
245.28
3
259.70
4
288.56
5
288.56
173.14
183.96
194.78
216.42
216.42
Margin Money
57.71
61.32
64.93
72.14
72.14
8.10
Operating Expenses
The Operating Expenses for the first year of operation i.e. at 80% capacity utilisation are as under:
Sl No
Particulars
Expense(Rs in lakhs)
4.15
Utilities
Depreciation
Raw Materials
Maintenance Charge
15.36
29.52
25.97
17.98
600.63
0.23
693.83
Total
8.11
Profitability Estimates
(Rs. In Lakhs)
S. NO.
PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
1000
1000
1000
1000
1000
Capacity Utilization
80%
85%
90%
100%
100%
800
850
900
1000
1000
880
935
990
1100
1100
601
638
676
751
751
Production/Sales
Expenses
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Utilities
Administrative Overheads
22
22
22
22
22
Salaries
19
19
19
19
19
Sales Expenses
22
23
25
28
28
Loan Repayment
39
39
39
39
39
Maintenance Charges
0.23
0.23
0.23
0.23
0.23
TOTAL
708
746
785
863
863
GROSS PROFIT
172
189
205
237
237
30
24
18
12
26
28
29
32
32
Sub Total
55
52
48
45
39
18.0
18.0
18.0
18.0
18.0
99
119
139
174
180
33
39
46
57
59
66
79
93
117
121
Financial Expenses
Depreciation
8.12
Financial Indicators
Yr-2
935
Yr -3
990
Yr -4
1100
Yr-5
1100
Salaries
19
19
19
19
19
22
23
25
28
28
Depreciation (SLM)
18
18
18
18
18
Utilities (Fixed)
Admin. Overheads
22
22
22
22
22
Loan Repayment
39
39
39
39
39
30
24
18
12
154
150
146
142
136
601
638
676
751
751
25.97
27.59
29.22
32.46
32.46
627
666
705
783
783
Contribution
253
269
285
317
317
Sales Realisation
Fixed Costs
Variable Cost
Raw Materials
Interest On Working Capital Loan
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61%
51%
Breakeven In %
Average Break-Even
56%
51%
Mott MacDonald
NEDFi
45%
43%
The IRR for the project is 27.3%, Average ROI is 60% and the average DSCR is 2.37.
(Rs. In Lakhs)
Particulars
Year of Operation
1
880
2
935
3
990
4
1100
5
1100
98.97
118.55
139.11
174.14
180.24
66.31
79.43
93.21
116.67
120.76
LT Interest
29.52
24.40
18.30
12.20
6.10
Depreciation
17.98
17.98
17.98
17.98
17.98
LT Loan Repayment
39.35
39.35
39.35
39.35
39.35
50%
55%
59%
69%
69%
Average ROI
60%
Revenue
68.87
63.75
57.65
51.55
45.45
- Coverage
113.81
121.81
129.48
146.85
144.84
DSCR
1.65
1.91
2.25
2.85
3.19
Average DSCR
2.37
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Pre-fill PP Polymer
9.1
Introduction
Mott MacDonald
NEDFi
The Thermoplastic compounding industry forms a vital interface between resin production and the
plastic converter. Most processors require the polymers they use, to be coloured or modified in some
way (i.e. with the addition of additives such as flame retardants or UV light stabilizers) and in the case
of PVC, all resin has to be compounded before it can be processed. Very few processors carry out their
own compounding; the majority buy in ready compounded material either directly from the polymer
supplier or through independent compounders.
With wide range of application, the demand of the compounds/master-batches continues to grow and
help in increasing the value-addition of the polyolefin. While compounding enhances the properties of
polymers coupled with the reduction in costs, the master-batches provide the desired aesthetics to the
polymer.
9.2
Market Potential
The Indian compounding industry scenario has been briefly summarized as below:
165 KTA
Total production
99 KTA
Capacity Utilization
60%
No. of players
21
Major applications
Major compounders
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9.3
Mott MacDonald
NEDFi
Plant Capacity
The heart of compounding technology is the extruder equipments. The prominent suppliers of
Twin-screw extruders are:
Overseas Suppliers
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Fressia Macros
Werner and Pfleidler
Berstoff
Buss Co-kneader Extrusion systems
Thyssen Machinenbau GmbH
Ferrel Corporation
Domestic Suppliers
Inventa
Windsor
Rubplast
Interplast
9.5
The raw material required is PP and additives. At 100% capacity utilisation 525 MT of PP and 53 MT
of additives are required. The main utilities are power and water. Around 449 KL of water and 150
KW of power is required per annum.
9.6
The total land required is 2000 sq. m. and the built-up area is 800 sq. m
9.7
Manpower Requirement
Staff
Nos
Plant Manager
Laboratory Manager
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
12
Security
34
9.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
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Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is Rs. 218.31 Lakhs as per the table below:
S.No
Cost Head
Building
Machinery
Contingency Expenses
Land Development
64.67
43.25
2.00
30.18
10.21
4.00
Total
218.31
Rs in lakhs
72.76
Equity
145.55
218.31
Debt
Total
9.9
Particulars
Net WC
1
120.74
2
137.98
3
155.23
4
172.48
5
172.48
90.55
103.49
116.42
129.36
129.36
Margin Money
30.18
34.50
38.81
43.12
43.12
9.10
Operating Expenses
The Annual Operating Expenses for the first year (70 % capacity utilisation) are as under:
S.No
Particulars
Expense(Rs in lakhs)
1.10
Utilities
Raw Material
Depreciation
Maintenance Charges
18.54
21.83
13.58
256.60
9.36
0.46
55
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321.48
Total
9.11
Profitability Estimates
S. NO. PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
550
550
550
550
550
Capacity Utilization
70%
80%
90%
100%
100%
Estimated Production
385
440
495
550
550
481
550
618.75
687.5
687.5
257
293
330
367
367
Utilities
Administrative Overheads
14
14
14
14
14
Salaries
19
19
19
19
19
Sales Expenses
12
14
15
17
17
Loan Repayment
29
29
29
29
29
Maintenance Charges
0.46
0.46
0.46
0.46
0.46
Total
332
370
408
447
447
Gross Profit
150
180
210
241
241
22
18
14
14
16
17
19
19
Sub Total
35
34
31
28
24
Depreciation
9.4
9.4
9.4
9.4
9.4
105
137
170
203
208
35
45
56
67
68
70
92
114
136
139
Production/Sales
Expenses
Raw Material Consumption
Financial Expenses
9.12
Financial Indicators
(Rs In Lakh)
Yr -1
481
Yr-2
550
Yr -3
619
Yr -4
688
Yr-5
688
23
23
23
23
23
Fixed Costs
Salaries
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12
14
15
17
17
Depreciation (SLM)
Utilities (Fixed)
Admin. Overheads
14
14
14
14
14
Loan Repayment
29
29
29
29
29
22
18
14
110
108
106
103
98
257
293
330
367
367
13.58
15.52
17.46
19.40
19.40
270
309
347
386
386
Contribution
211
241
271
302
302
Breakeven In %
52%
45%
39%
34%
33%
Average BEP
41%
Variable Cost
Raw Materials
Interest On Working Capital Loan
The IRR for the project is 23.2%, Average ROI is 86% and the average DSCR is 3.27
(Rs. In Lakhs)
Particulars
Year of Operation
1
481
2
550
3
619
4
688
5
688
104.88
137.10
170.05
202.99
207.50
70.27
91.86
113.93
136.01
139.03
LT Interest
21.83
18.05
13.54
9.02
4.51
Depreciation
9.36
9.36
9.36
9.36
9.36
LT Loan Repayment
29.11
29.11
29.11
29.11
29.11
62%
75%
88%
101%
101%
Average ROI
86%
Revenue
50.94
47.16
42.65
38.13
33.62
- Coverage
101.47
119.27
136.83
154.39
152.90
1.99
2.53
3.21
4.05
4.55
DSCR
Average DSCR
3.27
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10
Toys
10.1
Introduction
Mott MacDonald
NEDFi
Plastics due to possibility of wide range of shapes, designs and colours and suitability to mass
production are finding ever increasing acceptance as the conventional raw materials for toys. This is
also the fastest growing market because of increasing urbanization and an awareness about the quality
of toys. All the present manufacturers of branded toys use different plastics as the major raw material
for their toys.
Newer designs continue being introduced in the market to attract consumer attention. However, the
basic themes for toys are almost the same over the years e.g. dolls, cars, aeroplanes, trains, animals,
robots etc. For the present profile, we have considered a project to manufacture quality plastic
moulded toys based on all the above themes.
10.2
Market Potential
The household goods, toys sector is highly fragmented in the north east, characterized by the presence
of about 9-10 small scale manufacturers. The total consumption of PP by these industries ranges from
100-150 TPA, of which the consumption in Assam is about 15-20 TPM. The total PE consumption
(mainly HDPE consumption) is about 50 TPM, of which Assam accounts for about 10%. The overall
growth of industries in this sector has been 10-15%.
10.3
Plant Capacity
The manufacturing process involves preparation of charge, injection moulding of parts or entire toy,
finishing and assembling, printing and packaging. IM grade LLDPE is mixed with other additives like
stabilizers and colourants. This compounded charge is fed in controlled quantity through a feed-hopper
to the extruder cylinder, where by means of band heaters and shearing action of continuously rotating
screw it is converted into an easily flowing melt. Through a well designed nozzle, runner and gate
arrangement the melt is transferred into the required mould, mounted on the fixed platen of injection
moulded unit. The moving platen closes the mould at specified locking tonnage and the part or entire
toy gets moulded under required pressure.
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The article remains in the mould till it is cooled and is then ejected by means of ejector pins or plates.
The moulded part is then sent to the finishing section where extra materials are removed and sent for
recycling. If printing is to be done, the finished part is sent to printing unit. Otherwise it is directly sent
to assembly and packaging unit where assembling and final packaging is done before despatching the
toy to stores.
The machinery required is as under:
1. Injection Moulding Machine
2. Printing Machine
3. Moulds
4. Utility equipments
Machinery Suppliers:
1.
2. Ace Automation,
228/1, M. G. R. Street,
Sivanandapuram, Saravanampatti
Coimbatore - 641 035
3. G.S Azad Industry
A-31, Nariana Industrial Area Phase I
New Delhi - 110 028
10.5
The raw material required is LLDPE. At 100% capacity utilisation 510 MT of LLDPE is required. For
packaging, 51 MT of LLDPE is required.
Raw
Material Total requirement per annum Cost (Rs./MT)
Requirement
(MT)
Total
Lakhs)
Cost(Rs.
LLDPE( 2% wastage)
510
72098
368
51
72098
37
404
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The main utilities are power and water. Around 386 KL of water and 20 KW of power is required per
annum.
10.6
The total land required is 2000 sq. m. and the built-up area is 800 sq. m
10.7
Manpower Requirement
Staff
Nos
Plant Manager
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
10
Security
28
A margin of 25% has been considered for other benefits for the staff.
10.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is Rs. 152.82 Lakhs as per the table below:
S.No.
Cost Head
Building
Machinery
Contingency Expenses
Land Development
Total
The means of finance considering Debt-Equity ratio of 2:1 will be:
Means of Finance
Equity
Debt
Rs in lakhs
50.94
101.89
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Total
10.9
152.82
Working Capital Requirement
Particulars
Net WC
1
109.88
2
117.21
3
131.86
4
146.51
5
146.51
82.41
87.91
98.89
109.88
109.88
Margin Money
27.47
29.30
32.96
36.63
36.63
10.10
Operating Expenses
The Annual Operating Expenses for the first year (75 % capacity utilisation) are given below:
S.No
Particulars
Expense(Rs in lakhs)
0.1
Utilities
Raw Material
Depreciation
Maintenance Charge
14.34
15.28
12.36
303.35
5.18
0.46
351.08
Total
10.11
Profitability Estimates
S. NO. PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
Installed Capacity
500
500
500
500
500
Capacity Utilization
75%
80%
90%
100%
100%
Estimated Production
375
400
450
500
500
413
440
495
550
550
303
324
364
404
404
Utilities
Administrative Overheads
11
11
11
11
11
Salaries
14
14
14
14
14
Sales Expenses
10
11
12
14
14
Production/Sales
Expenses
Raw Material Consumption
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20
20
20
20
20
Maintenance Charges
0.46
0.46
0.46
0.46
0.46
Total
360
381
423
465
465
Gross Profit
53
59
72
85
85
15
13
12
13
15
16
16
Sub Total
28
26
24
23
20
Depreciation
5.2
5.2
5.2
5.2
5.2
20
28
43
58
61
14
19
20
13
19
29
39
41
Loan Repayment
Financial Expenses
10.12
Financial Indicators
(Rs In Lakh)
Yr -1
413
Yr-2
440
Yr -3
495
Yr -4
550
Yr-5
550
Salaries
18
18
18
18
18
10
11
12
14
14
Depreciation (SLM)
Utilities (Fixed)
Admin. Overheads
11
11
11
11
11
Loan Repayment
20
20
20
20
20
15
13
80
78
76
75
71
303
324
364
404
404
12.36
13.19
14.83
16.48
16.48
316
337
379
421
421
Contribution
97
103
116
129
129
Breakeven In %
83%
76%
66%
58%
55%
Average BEP
68%
Sales Realisation
Fixed Costs
Variable Cost
Raw Materials
Interest On Working Capital Loan
The IRR for the project is 22%, Average ROI is 37% and the average DSCR is 1.49.
(Rs. In Lakhs)
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Particulars
Mott MacDonald
NEDFi
Year of Operation
1
413
2
440
3
495
4
550
5
550
19.69
28.11
42.80
57.48
60.64
13.19
18.83
28.67
38.51
40.63
LT Interest
15.28
12.63
9.48
6.32
3.16
Depreciation
5.18
5.18
5.18
5.18
5.18
LT Loan Repayment
20.38
20.38
20.38
20.38
20.38
26%
30%
38%
45%
45%
Average ROI
37%
Revenue
35.66
33.01
29.85
26.69
23.54
- Coverage
33.68
36.67
43.35
50.04
48.99
DSCR
0.94
1.11
1.45
1.87
2.08
Average DSCR
1.49
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11
Woven Sacks
11.1
Introduction
Mott MacDonald
NEDFi
Synthetic Woven Sacks made from HDPE or PP are one of the bulk packaging materials. These sacks
are presently being used for packaging of bulk commodities like cement, fertilizers and some other
applications like sugar, salt, chemicals, wheat flour, starch, poultry products, bulk drugs etc. Some of
the newer applications of woven sacks are Geo-synthetic products, postal/mail bags, tea packaging etc.
High density polyethylene or HDPE woven sacks have become a versatile commodity in the
packaging industry. Introduced for the first time in India during the year 1969 it has over the years
replaced the conventional jute bags to a large extent. HDPE sacks have an edge over the conventional
jute sacks in the sense that the former are light in weight, strong and attractive. These sacks are
immune to the effect of corrosion, decay, moisture, atmosphere, rats, rodents, moths and insects.
Being superior in quality and economic as compared to the traditional jute material, these modern
sacks have gradually captured a large market for packing fertilizers, chemicals, food stuffs, animal
foods, oil cakes etc. Sacks made of HDPE are laminated with LDPE inside it. This gives protection
against moisture, air and the material packed cannot penetrate out of the sack.
11.2
Market Potential
Woven Sacks industry constitutes PP & HDPE polymers and is primarily used for packaging of
industrial goods such as cement, fertilizer, flour, chemicals, sugar as well as agricultural produce. The
total estimated installed capacity of woven sacks segment in North-Eastern Region is in the range of
900 MTPM dominated by PP. The woven sacks industry is the single largest PP consuming sector in
the NER. At present there are no units manufacturing laminated HDPE woven sacks in Assam or in
any part of the N.E. Region. As a result the full requirement of laminated HDPE woven sacks is
supplied by manufacturers from outside the state and region.
The current demand for woven sacks in North Eastern region is estimated to be in the range of 600650 MTPM of which only 60-70% of the requirement is fulfilled by local industries. Cement,
Fertilizer and Flour Mills are major woven sacks consuming sectors in North-Eastern Region. The
only fertilizer complex (urea based) of NER is located in Assam with installed capacity of 0.5
MMTPA, and has reported a production growth of 12% in the past five years. Apart from urea
complex, there are 9 bio-fertilizer units in the region with a total installed capacity of 1115 MTPA.
The consumption of HDPE for a standard packaging size of 50 kg fertilizer ranges between 110-120
gm. Based on this, the annual HDPE consumption for the fertilizer industry is estimated to be about
800 TPA (nearly 70 TPM). Almost entire quantity of the HDPE sacks requirement is met by suppliers
outside the NER.
11.3
Plant Capacity
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Annual Production capacity: 600 TPA laminated HDPE woven sacks and 400 TPA of PP
woven sacks.
The unit has been assumed to operate at 75%, 80% and 90% of its installed capacity in the
first, second and third year and onwards of its operation.
11.4
The process of manufacture of laminated HDPE woven sacks involves four major operations which
maintain continuity from the raw material or HDPE granules stage to the finished product stage. These
operations or processes are as follows:
1. Production of mono-axially oriented tapes in the extruder and auxiliary equipment
2. Processing of the tapes thus produced in textile equipment and machinery to obtain the woven
material or fabric.
3. Extrusion coating/laminating the out coming woven material with low density polyethylene in
the extrusion coating/laminating plant.
4. Cutting and stitching the laminated woven material into the required sizes and finally printing
the name, trade mark etc. of the agency whose product is to be packed on the sack to obtain
the final or finished product.
Major machinery required for manufacturing woven sacks is as under:
Extrusion Tape Lines for Raffia Tape Manufacture
Circular Weaving Machines
Laminating Machines
Cutting Machine
Stitching Machines
Printing Machines
Under this project, the plant would be producing the output till the laminating stage. Cutting, stitching
and printing can be outsourced (on job work basis) since the production capacity is not that high and
hence it is advisable to go in till the laminating stage in the initial phase. For future expansion,
machines for cutting, stitching and printing can be added.
Plant and Machinery Suppliers
The following table gives the names and addresses of suppliers along with the machinery type suitable
for the process and product.
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Sl No
1
Name
Lohia Starlinger Ltd
J.P.Industries
11.5
Mott MacDonald
NEDFi
Communication Address
D-3/A,
Panki
Industrial
Estate,
Kanpur - 208 022, INDIA
5403, Phase IV, G. I. D. C. Industrial Area, Vatva,
Ahmedabad 380 44, Gujarat
1701,
G.I.D.C.
Industrial
Estate
Ankleshwar
393
002,
Dist. Bharuch, Gujarat, India.
Brimco House, 55 Govt. Indl. Estate,Charkop, Kandivli
(W), Mumbai - 400067 ,Maharashtra, India
The total land required is 8000 sq.m. and the built-up area is 3200 sq.m.
11.7
Staff
Nos
1
Production Manager
Accountant
Supervisors
Skilled Workers
10
Unskilled Workers
15
Security
35
A margin of 25% has been considered for other benefits for the staff.
11.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total Project Cost is Rs. 675.44 Lakhs as per the table below:
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S.No
1
2
3
4
5
6
7
Total
Cost Head
Building
Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money for Working Capital
Contingency Expenses
Land Development
Mott MacDonald
NEDFi
Means of Finance
Rs in lakhs
225.12
Equity
450.31
675.44
Debt
Total
11.9
Years of Operation
Net WC
1
283.14
2
302.01
3
339.77
4
377.52
5
377.52
212.35
226.51
254.82
283.14
283.14
Margin Money
70.78
75.50
84.94
94.38
94.38
11.10
Operating Expenses
The Annual Operating expenses for the first year (75% capacity utilization) are given below:
Sl No
Particulars
Expense(Rs in lakhs)
1.06
Utilities
Raw Material
Depreciation
Maintenance Charges
15.84
67.55
31.85
570.50
30.80
1.84
15.00
734.44
Total
67
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11.11
Mott MacDonald
NEDFi
Profitability Estimates
(Rs. In Lakhs)
S. NO. PARTICULARS
YEAR
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
600
600
600
600
600
Installed
400
400
400
400
400
Capacity Utilization
75%
80%
90%
100%
100%
Estimated
Production
450
480
540
600
600
300
320
360
400
400
1140
1216
1368
1520
1520
571
609
685
761
761
Utilities
Administrative Overheads
30
30
30
30
30
Salaries
20
20
20
20
20
Sales Expenses
29
30
34
38
38
Loan Repayment
90
90
90
90
90
Maintenance Charges
15
16
18
20
20
Total
757
798
880
962
962
Gross Profit
383
418
488
558
558
68
56
42
28
14
Interest
32
34
38
42
42
99
90
80
70
56
Depreciation
30.8
30.8
30.8
30.8
30.8
253
297
377
457
471
83
98
124
151
155
169
199
253
306
316
Production/Sales
Capacity
(PP
Expenses
Raw Material Consumption
Financial Expenses
On
Working
Sub Total
11.12
Financial Indicators
(Rs In Lakh)
Yr -1
1140
68
Yr-2
1216
Yr -3
1368
Yr -4
1520
Yr-5
1520
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Fixed Costs
Salaries
20
20
20
20
20
29
30
34
38
38
Depreciation (SLM)
31
31
31
31
31
Utilities (Fixed)
Admin. Overheads
30
30
30
30
30
Loan Repayment
90
90
90
90
90
68
56
42
28
14
268
258
248
238
224
571
609
685
761
761
31.85
33.98
38.22
42.47
42.47
602
643
723
803
803
Contribution
538
573
645
717
717
Breakeven In %
50%
45%
38%
33%
31%
Average BEP
40%
Variable Cost
Raw Materials
Interest On Working Capital Loan
The IRR for the project is 18.9%, Average ROI is 66% and the average DSCR is 2.54.
(Rs. In Lakhs)
Particulars
Year of Operation
1
1140
2
1216
252.64
1368
1520
1520
297.29
377.14
456.98
470.94
169.27
199.18
252.68
306.18
315.53
LT Interest
67.55
55.84
41.88
27.92
13.96
Depreciation
30.80
30.80
30.80
30.80
30.80
LT Loan Repayment
90.06
90.06
90.06
90.06
90.06
52%
57%
67%
76%
76%
Average ROI
66%
Revenue
157.61
145.90
131.94
117.98
104.02
- Coverage
267.61
285.82
325.36
364.90
360.29
DSCR
1.70
1.96
2.47
3.09
3.46
Average DSCR
2.54
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12
12.1
Introduction
Mott MacDonald
NEDFi
Thermo-plastic materials like High Density Polythene (HDPE) can be blow moulded into containers
of different sizes and shapes. Some of the common items that are produced include buckets, mugs and
jerry cans. Their light weight, flexibility, corrosion and chemical resistance have made these plastic
products popular for storage and handling of water, petrol, diesel etc.
Combs are an item of daily necessity. In earlier days, combs were made out of ivory, horns of cows
and buffaloes, which have now become costly affair. In recent years, plastic combs are being used,
increasingly it is becoming convenient to handle and economic. Plastic combs are produced using
Polypropylene by injection moulding machines.
12.2
Market Potential
Plastic comb, mug, bucket and containers are considered as necessity items for every household. As
per 2001 census the population of North Eastern region is 3.90 Crores. Considering that five persons
constitute a household the total household in the region is 78, 00,000 and also considering that every
year there is a replacement demand to change these items by at least 30% of total number of
households, the requirement of these items on this basis becomes 23,40,000 numbers. This may be in
addition to the new demand for these items by at least 15% of total number of household every year
which stands at 11,70,000. Therefore, every year at least 35, 10,000 such items are required by the
households in the North Eastern Region.
To meet the above demand there exist around 10 numbers of related units in the region in Guwahati,
Dibrugarh and Dimapur. The production of these units is limited and bulk of the requirement is being
met from outside sources, the leading brands being Brite and Prince. Again plastic combs are of
normal size and pocket size combs. The leading brands the market are Lily, Brite, Joy and Dill.
Therefore there is a scope for additional units to produce plastic mug, bucket, containers and combs.
12.3
Plant Capacity
7, 00,000 nos of products of which 3, 60,000 are Mug, 1, 40,000 Bucket and 2, 00,000
are Containers.
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The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from the fourth year onwards of its operation.
12.4
(i)
Manufacturing Process
Mug, bucket and containers are manufactured on a semi-automatic extrusion blow moulding machine.
The main process steps involved are as follows:
Plastic material in the form of granules is subjected to heat and pressure in an extruder.
Semi-molten plastic in extruder passed through the nozzle known as Parison. Adjustments have to
be made in the machine to vary the wall thickness of the parison.
Suitable parison is then inserted in a female mould and air is blown into parison to force the molten
plastic against the sides of the mould.
The material is then cooled before removal from the mould.
The article is then trimmed to remove flashes.
The main process steps for plastic combs are as follows:
Polypropylene is fed into the hopper of the injection moulding machine, which essentially has an
injection unit and a multicavity mould system.
The mould is held between the two platens which are kept closed by the locking pressure.
The material which gets plasticized in the barrel is injected under higher pressure into the mould
which results in a moulded article i.e. comb.
The combs are then finished by removing the injection feed etc.
The second stage processing operations i.e. buffing, polishing and printing are carried out on the
combs.
The combs are then kept inside plastic water proof paper cover and packed.
(ii)
The following are the plant and machinery required for the project.
The major equipment required by the unit for producing mug, bucket and container are as follows:
Semi automatic extrusion blow moulding machine consisting of:
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500 mm screw extruder with 10 HP motor, variable speed drive and electrical
control cabinet.
Cross head dies (single, double and triple cores) and spanner.
Mould closing and opening unit with hydraulic system
Compressor.
Water pump
Moulds, dies tools etc
The main equipment required for producing plastic combs are as follows:
Semi automatic hydraulic injection moulding machine complete with all accessories
Scrap grinder
Buffing, polishing and hot stamping machine
Moulds
Small hand-tools, greasing and cooling equipment
Testing instruments such as micrometer, balance etc
The equipment has been selected keeping in view the capacity and other process considerations.
(iii)
The following are the list of the plant and machinery suppliers.
1
Sl No
Name
M/s R.H. Windsor (India) Ltd.
Communication Address
E-6 UZ Road, Thane Industrial Estate,
Thane 400 604
12.5
The main raw materials required are PP and HDPE. The annual requirement at 100% capacity
utilisation for PP and HDPE is estimated to be 74 tonnes per annum (considering wastage also).
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The utilities required are power and water. Around 75 KW of Power and 3300 KLPA of water are
required.
Material
HDPE
Items
Mug
Bucket
Container
Numbers
manufactured
360000
140000
200000
Approx Wt (gms)
600000
10
Sub total
Combs
PP
Total with 2 % wastage
12.6
40
300
50
Total Weight in
Tonne/year
14
42
10
66
6
74
The total estimated land requirement is 1000 sq metre while the built-up area is 700 sq.mtrs.
12.7
Manpower Requirement
The total manpower requirement is 15 nos out of which administrative is 4 and factory staff is 11.
Details of the manpower are given below:
Personnel
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Unskilled Workers
Peon/Watchman
Total
12.8
Nos
1
1
1
1
6
4
1
15
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 130.48 lakhs as follows.
Sl No
1
2
3
4
5
6
Rs in Lakhs
2.00
56.00
47.46
7.25
2.44
9.13
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Total
Mott MacDonald
NEDFi
Contingencies
6.21
130.48
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Rs in lakhs
32.62
97.86
130.48
Equity
Debt
Total
12.9
12.10
Particulars
Net Working Capital
Available Bank Finance
Margin Money
Years of Operation
2
3
4
41.73
46.95
52.17
31.30
35.21
39.13
10.43
11.74
13.04
1
36.52
27.39
9.13
5
52.17
39.13
13.04
Operating Expenses
The Annual Operating Expenses estimated at Rs 86.95 lakhs (70% capacity utilization) are given
below:
Sl No
Particulars
Rs in lakhs
1
Maintenance Charges
0.23
2
Raw materials
34.23
3
Utilities
5.37
4
Wages & Salaries
9.98
5
Administrative Overheads
4.20
6
Selling expenses
5.75
7
Packing expenses
4.03
8
Interest on term loan
14.68
9
Interest on Bank Finance for Working Capital
4.11
10
Depreciation
4.39
Total
86.95
12.11
Profitability Estimates
(Rs in Lakhs)
Sl No
Particulars
Production/Sales
Installed Capacity
Yr -1
Yr-2
Year
Yr -3
Yr -4
Yr-5
72
72
72
72
72
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Capacity Utilization
Estimated Production
Gross Sales Revenue
Mott MacDonald
NEDFi
70%
51
161
80%
58
184
90%
65
207
100%
72
230
100%
72
230
35
5
4
10
4
4
0
0.23
63
98
40
5
4
10
5
5
24
0.23
94
90
45
5
4
10
5
5
24
0.23
100
107
50
5
4
10
6
6
24
0.23
106
124
50
5
4
10
6
6
24
0.23
106
124
15
4
19
4.4
75
25
50
15
5
19
4.4
66
22
45
11
5
16
4.4
86
28
58
7
6
13
4.4
106
35
71
4
6
10
4.4
110
36
74
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
12.12
Financial Indicators
Yr -1
161
Yr-2
184
Yr -3
207
Yr -4
230
Yr-5
230
10
4
4
2
5
4
15
45
10
5
4
2
5
4
15
24
70
10
5
4
2
5
4
11
24
67
10
6
4
2
5
4
7
24
63
10
6
4
2
5
4
4
24
60
35
4
4.11
43
40
5
4.70
50
45
5
5.28
56
50
6
5.87
62
50
6
5.87
62
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Contribution
Breakeven In %
Average Breakeven
118
38%
41%
134
52%
Mott MacDonald
NEDFi
151
44%
168
38%
168
36%
The IRR for the project is 19.7%, Average ROI is 79% and Average DSCR is 2.78.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
LT Loan Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
1
161
74.68
50.03
14.68
4.39
0.00
72%
79%
2
184
66.43
44.51
14.68
4.39
24.47
66%
14.68
69.11
4.71
2.78
39.14
63.58
1.62
Year of Operation
3
4
207
230
86.32
106.21
57.83
71.16
11.01
7.34
4.39
4.39
24.47
24.47
78%
90%
35.47
73.23
2.06
31.81
82.89
2.61
5
230
109.87
73.62
3.67
4.39
24.47
90%
28.14
81.68
2.90
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13
13.1
Introduction
Mott MacDonald
NEDFi
Thermoplastic materials like High Density Polythene (HDPE) can be blow moulded into containers of
different sizes and shapes. Some of the common items that are produced include bottles and containers
of different size. Bottles and containers are more than half of all HDPE packaging products. Their
light weight, flexibility, corrosion and chemical resistance have made these plastic products popular
for storage and handling of water, petrol, diesel etc.
HDPE Bottles are used for detergents, shampoos, motor oil, milk and other liquid products and drugs
and cosmetic products. Milk bottles are the single biggest HDPE packaging material. Most milk and
water bottles use a natural-colored HDPE resin. Bottles used for detergents, shampoos and other
products often have colorants added to the resin. Injection-moulded HDPE containers are used for
products such as margarine and yogurt. Bottles have 90 percent of the HDPE rigid package market;
while containers have the remainder. HDPE resin also can be used to make bottle and container caps,
and flexible packaging such as sacks and trash bags. HDPE bottles and containers have been
displacing heavier metal, glass and paper packaging since 1970s.
13.2
Market Potential
Since the early seventies high-density polyethylene (HDPE) has been the polymer of choice for the
production of bottles of up to 5 litres capacity. These bottles are cornering the market for packaging
liquids such as detergents, cosmetics, lubricants and dairy products, a market whose scope has opened
up a multitude of potential applications for HDPE. In this market that was far from mature, growth
could be realized in virtually every segment. There was little competition except from PVC.
At present, cartons, pouches and bottles made of HDPE, polypropylene, PET (recycled bottles) and
polycarbonate all compete for space on retailers' shelves. Glass bottles have lost market share and are
now holding their own in just a few traditional segments.
The features which make HDPE the first choice are the following:
Highly cost-effective material
Excellent fitness for use
Wide-ranging design potential and processing flexibility,
Excellent polymer supported by a good depth of market experience at all points in the value chain,
Meets the environmental requirements imposed by modern-day society.
Thus, industry has recognized HDPE as the plastic container of choice to ensure purity of its contents.
Plastic milk containers and the non-clear variety of water jugs are made of High Density Polyethylene.
Opaque vitamin and medicinal products are contained in HDPE containers. Laundry detergent bottles
and fuel tanks in automotive vehicles are also made of HDPE.
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NEDFi
HDPE containers have become very popular among health conscious individuals who want to store
their items in the best food grade plastic material possible. Refillable water bottles, food storage
containers and body product bottles are some of the most requested items in our inventory. HDPE
plastic may be identified by its milky translucent or opaque white color.
13.3
Plant Capacity
(i)
Manufacturing Process
HDPE Bottles and containers are manufactured in an automatic/ semi-automatic extrusion blow
moulding machine. The main process steps involved are as follows:
Plastic material in the form of granules is subjected to heat and pressure in an extruder.
Semi-molten plastic in extruder passed through the nozzle known as Parison. Adjustments have to
be made in the machine to vary the wall thickness of the parison.
Suitable parison is then inserted in a female mould and air is blown into parison to force the molten
plastic against the sides of the mould.
The material is then cooled before removal from the mould.
The article is then checked for holes etc using compressed plant air.
(ii)
The major equipments required by the unit for HDPE bottles are as follows:
Automatic / Semi automatic extrusion blow moulding machine consisting of:
o Extruder
o Cross head dies (single, double and triple cores) and spanner.
o Mould closing and opening unit with hydraulic system
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NEDFi
o Compressor.
Water pump
The equipment has been selected keeping in view the capacity and other process considerations.
(iii)
Sl No
Name
Suresh Engineering Works
Communication Address
13,14-B, Kalyan Vishranti Grah.South
Tukoganj, Indore-452 001 (M.P)
13.5
The main raw material required is HDPE. The annual requirement at 100% capacity utilisation for
HDPE is estimated to be 128 tonnes per annum (considering wastage also).
The utilities required are power and water. Around 30 KW of Power and 450 KLPA of water are
required.
13.6
The total land area is estimated to be 700 sq metres while the built- up area is 500 sq.mtrs.
13.7
Manpower Requirement
The total manpower requirement is 15 nos out of which administrative is 4 and factory staff is 11.
Personnel
Nos
1
1
1
1
5
3
2
1
15
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
79
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13.8
Mott MacDonald
NEDFi
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 68.80 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Total
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Rs in Lakhs
1.40
40.00
7.25
7.38
1.28
8.21
3.28
68.80
The project cost may be financed under a debt equity ratio of 3: 1 as follows:
Means of Finance
Equity
Debt
Total
13.9
Rs in lakhs
17.20
51.60
68.80
Particulars
Net Working Capital
Available Bank Finance
Margin Money
Years of Operation
2
3
4
37.53
42.22
46.92
28.15
31.67
35.19
9.38
10.56
11.73
1
32.84
24.63
8.21
5
46.92
35.19
11.73
Operating Expenses
The annual operating expenses estimated at Rs 95.57 lakhs (80% capacity utilization) as given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.16
2
Raw materials
60.23
3
Utilities
1.71
4
Wages & Salaries
9.98
5
Administrative Overheads
3.10
6
Selling expenses
3.36
7
Packing expenses
3.36
8
Interest on term loan
7.74
9
Interest on Bank Finance for Working Capital
3.69
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10
Total
13.11
Mott MacDonald
NEDFi
Depreciation
2.24
95.57
Profitability Estimates
(Rs. in Lakhs)
Sl No
Particulars
Production/Sales
Installed Capacity in lakh nos
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
13.12
Yr -1
Yr-2
Year
Yr -3
18
70%
13
18
80%
14
18
90%
16
18
100%
18
18
100%
18
134
154
173
192
192
60
2
3
10
3
3
0
0.16
82
53
69
2
3
10
4
4
13
0.16
104
49
77
2
3
10
4
4
13
0.16
114
59
86
2
3
10
5
5
13
0.16
123
69
86
2
3
10
5
5
13
0.16
123
69
8
4
11
2
39
13
26
8
4
12
2
35
12
23
6
5
11
2
46
15
31
4
5
9
2
57
19
38
2
5
7
2
59
20
39
Yr -4
Yr-5
Financial Indicators
Yr -1
134
Yr-2
154
Yr -3
173
Yr -4
192
Yr-5
192
10
3
2
1
10
4
2
1
10
4
2
1
10
5
2
1
10
5
2
1
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Utilities (Fixed)
Admin. Overheads Incl Insurance
Interest On L.T. Loan
Loan Repayment
Total Fixed Costs
Variable Cost
Raw Materials
Packing
Interest On Working Capital Loans
Total Variable Costs
Contribution
Breakeven In %
Average Breakeven In %
2
3
8
29
60
3
3.69
67
67
43%
45%
Mott MacDonald
NEDFi
2
3
8
13
43
2
3
6
13
41
2
3
4
13
40
2
3
2
13
38
69
4
4.22
77
77
55%
77
4
4.75
87
86
48%
86
5
5.28
96
96
41%
86
5
5.28
96
96
39%
The IRR for the project is 20.1%, Average ROI is 80% and average DSCR is 3.14.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
134
38.83
25.82
7.74
2.24
71%
80%
154
35.04
23.30
7.74
2.24
65%
7.74
35.80
4.63
3.14
20.64
33.28
1.61
Year of Operation
3
4
173
192
46.08
57.12
30.64
37.99
5.81
3.87
2.24
2.24
79%
92%
18.71
38.69
2.07
16.77
44.10
2.63
5
192
59.06
66.25
1.94
2.24
92%
14.84
70.43
4.75
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14
14.1
Introduction
Mott MacDonald
NEDFi
Mosquito net is an essential item of the bedding used by people to protect themselves from mosquito
bites during sleep. Though other protective items like mosquito repellent coils and mats, ointments are
available yet people prefer mosquito nets as there are no side effects as present in the chemically
prepared item. Hence, the demand for mosquito nets is always in the increase. With the introduction of
plastic nets, the preference for cotton nets are decreasing as plastic nets have more durability, easier
and lighter to wash with better air circulation.
14.2
Market Potential
Mosquito net is an essential item for human use. Its demand is not seasonal but exists throughout the
year. Apart from domestic consumption, there exists demand in hotels, hospital and defence sector,
who are bulk purchasers of the item through rate contracts.
14.3
Plant Capacity
The proposed plant shall produce HDPE mosquito nets in the weight range of 660-1060 Gms with an
installed capacity of 144 MT at 100% capacity utilisation.
14.4
(i)
Manufacturing Process
The raw material, HDPE is extruded. This fibre is wound onto bobbins and is weaved. The woven net
is cut and stitched and is checked for quality and packed in bails.
(ii)
The plant and machineries required for manufacturing HDPE Mosquito Net is as follows:
Extruder
Hanking Machine
Winding Machine
Warping Machine
Knitting Looms
Bale Press
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(iii)
Mott MacDonald
NEDFi
The following table gives the name and address of suppliers along with the machinery type suitable for
the process and product.
Sl No
1
Name
Neptune Plastics Industries
14.5
Communication Address
18
R
N
Mukherjee
Road,
7th
Floor
Kolkata-700001, West Bengal, India
A-419/420, 10th Main, 2nd Stage, Peenya Industrial Estate,
Bangalore - 560058, Karnataka, India
The major raw material required for the project is high density polyethylene (HDPE). The raw
material required would be around 144 MT at 100% capacity utilisation.
The utilities required are power and water. Around 75 KW of Power and 450 KLPA of water are
required.
14.6
The total land area is 1500 sq metres and the built up area is 1000 sq mt.
14.7
Manpower Requirement
Total manpower required would be 21 Nos of which administrative is 4 and factory staff is 17.
Personnel
Nos
Works Manager
1
Accountant-cum-Store Keeper
1
Administrative Assistant
1
Clerk
1
Skilled Workers
8
Semi Skilled Workers
4
Unskilled Workers
4
Peon/Watchman
1
Total
21
14.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The project cost is estimated at Rs 202.08 lakhs as follows.
Sl No
1
2
3
4
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Rs in Lakhs
3.00
80.00
83.05
7.80
84
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5
6
7
2.00
16.61
9.62
202.08
Of this, the project cost may be financed at a debt equity ratio of 3:1 as follows
Means of Finance
Equity
Debt
Total
14.9
Mott MacDonald
NEDFi
Rs in lakhs
50.52
151.56
202.08
Particulars
Net Working Capital
Available Bank Finance
Margin Money
Years of Operation
1
2
3
66.44
74.74
83.05
49.83
56.06
62.29
16.61
18.69
20.76
( Rs in Lakhs)
4
5
83.05
83.05
62.29
62.29
20.76
20.76
Operating Expenses
The annual operating expenses estimated at Rs 151.60 lakhs (80% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.35
2
Raw materials
77.71
3
Utilities
4.31
4
Wages & Salaries
12.98
5
Overheads
5.36
6
Selling expenses
7.20
7
Packing expenses
7.20
8
Interest on term loan
22.73
9
Interest on Bank Finance for Working Capital
7.47
10
Depreciation
6.63
Total
151.60
14.11
Profitability Estimates
(Rs. in Lakhs)
Sl No
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Yr -1
Yr-2
Year
Yr -3
144
80%
144
90%
144
100%
Yr -4
Yr-5
144
100%
144
100%
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Estimated Production
Gross Sales Revenue
Mott MacDonald
NEDFi
115
130
144
144
144
288
324
360
360
360
78
4
5
13
7
7
0
0.35
87
4
97
4
97
4
97
4
5
13
8
8
38
0.35
5
13
9
9
38
0.35
5
13
9
9
38
0.35
5
13
9
9
38
0.35
115
165
176
176
176
173
159
184
184
184
23
7
30
7
136
46
90
23
8
31
7
122
41
81
17
9
26
7
151
51
100
11
9
21
7
157
52
104
6
9
15
7
162
54
108
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
14.12
Financial Indicators
Yr -1
288
Yr-2
324
Yr -3
360
Yr -4
360
Yr-5
360
13
7
7
3
4
5
23
-
13
8
7
3
4
5
23
38
13
9
7
3
4
5
17
38
13
9
7
3
4
5
11
38
13
9
7
3
4
5
6
38
62
101
96
91
85
78
7
7.47
92
196
87
8
8.41
104
220
97
9
9.34
115
245
97
9
9.34
115
245
97
9
9.34
115
245
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Breakeven In %
Average Breakeven In %
32%
38%
46%
Mott MacDonald
NEDFi
39%
37%
35%
The IRR for the project is 24.7%, Average ROI is 83% and average DSCR is 2.92.
Particulars
1
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
LT Loan Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
288
136.05
90.48
22.73
6.63
0.00
82%
83%
22.73
119.84
5.27
2.92
Year of Operation
2
3
4
324
360
360
121.72
150.95
156.63
80.94
100.38
104.16
22.73
17.05
11.37
6.63
6.63
6.63
37.89
37.89
37.89
75%
86%
86%
360
162.32
107.94
5.68
6.63
37.89
86%
60.62
110.31
1.82
43.57
120.26
2.76
54.94
124.06
2.26
49.26
122.16
2.48
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15
15.1
Introduction
Mott MacDonald
NEDFi
Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) belong to
polyethylene group of thermo-plastics. LDPE is generally the softest and least crystalline of all the
polyethylene. LDPE has a unique combination of properties namely toughness, high impact strength,
low-brittleness temperature, flexibility, processibility, film transparency, chemical resistance and
having a density of 0.91 0.94. LDPE applications are mostly film based. The most common
application areas are in food packaging, milk pouches, industrial products, textiles, frozen foods,
agriculture and horticulture section etc.
LLDPE has all the advantages of LDPE together with the added benefit of low energy output which
leads to a saving of over 20% in the manufacturing cost. The use of LLDPE has been predominantly in
blends with LDPE as far as film extrusion is concerned. LLDPE and LDPE blended film are used for
milk packaging, nursery bags, heavy duty sacks and general purpose bags.
15.2
Market Potential
The unit is proposed to manufacture LLDPE carry bags and LDPE sheets. The biggest advantage of
using LLDPE is the possibility of down gauging of the film upto 30 percent or more with an
improvement in the mechanical properties such as tensile strength, tear strength etc. The common
sizes of plastic carry bags are 1 x 1 , 1 x 2, 1 x 3, 1 x and x .Different sizes
LLDPE carry bags are required by grocery shops, stationary shops, textile shops, restaurant, bakery,
pharmaceuticals shops, automobile spare parts shops etc.
Conversion of LDPE is mostly in the form of a film with balanced orientation for better toughness.
LDPE sheets generally come in rolls of size 100m x 2m and weight around 12 kg 14 kg. LDPE
sheets are mostly required by tea gardens to be used as aprons by labour for plucking of tea leaves, by
vegetables seller and for commercial as well as domestic use for protection from water/rainfall and for
tea packaging along with jute bags etc. LDPE sheets also have a good potential outlet in the filed of
agriculture and horticulture for several packaging and non packaging applications.
Mention may be made here that products manufactured from granules are of A Grade quality with
fine finishing fetching high price, the products manufactured from mixing of granules and scraps are
of Grade B quality with medium finishing fetching medium price and the products manufacturing
from scraps are of Grade C quality with average finish fetching low price. In view of recent ban on
Grade B and Grade C quality, finished products only A Grade quality finished products is
considered for the purpose.
15.3
Plant Capacity
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NEDFi
Annual Production capacity : 360 MT (carry bags 240 MT, Sheets 120 MT)
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and 100% capacity from the fourth year onwards of its operation.
15.4
(i)
Manufacturing Process
LDPE/LLDPE films are manufactured by extrusion process. Plastic extrusion is basically defined as
converting plastic powder or granules into a continuous uniform melt and forcing this melt through a
die which yields a desired shape. Any thermo-plastic product required in length of uniform crosssection is extruded. The basic processing steps involved are
Mixing of colours with granules.
Feeding of colour mixed granules into the hopper.
Heating of these mixed raw materials in an extruder.
Passing of molten raw materials through dies to get desired shape.
Cooling and winding of film.
Making of desired size Sheets/Bags and sorting.
Packing and despatch.
In India, an indigenous technology for LDPE, LLDPE products manufacturing is provided by
organizations like Central Institute of Plastic Engineering & Technology (CIPET).
(ii)
The major equipment required by the unit is shown below. The equipment has been selected keeping
in view the capacity and other process considerations.
Plant and equipment for extrusion of LDPE/LLDPE film which consists of the main assembles
Low base extruder, spiral type die set, air cooling ring, blower for cooling, take up tower, surface
winder and electrical control panel
Punches suitable for dies of 50mm and 80mm for processing LLDPE with air ring insert
Snap winding mechanism and cutting system (1 No).
Bottom Seal and both end seal bag making machine (for carry bags).
(iii)
Name
Communication Address
89
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1
2
3
4
15.5
Mott MacDonald
NEDFi
The main raw materials required are LDPE/LLDPE granules and master batch (colour). The colour to
be mixed with the raw materials is at the rate of around 2%.
The requirement of LDPE/LLDPE granules and master batch are as follows:
LDPE/LLDPE granules : 360 MT
Master batch: 7.2 MT
The utilities required are power and water. Around 100 KW of Power and 3840 KLPA of water are
required.
15.6
The total land required is 700 sq m and the built up area is 500 sq.m.
15.7
The total manpower required is 22, out of which administrative staff is 5 and factory staff is 17.
Personnel
Nos
1
1
1
2
6
6
4
1
22
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
15.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 122.39 lakhs as follows.
Sl No
Particulars
Rs in Lakhs
90
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1
2
3
4
5
6
7
Mott MacDonald
NEDFi
1.40
40.00
44.51
7.58
2.29
20.78
5.83
122.39
The project cost may be financed under a debt equity ratio of 3: 1 as follows:
Means of Finance
Rs in lakhs
Promoters contribution
30.60
Term Loan
91.79
Total
122.39
15.9
Particulars
Net Working Capital
Available Bank Finance
Margin Money
1
83.12
62.34
20.78
Years of Operation
2
3
4
94.99
106.87
118.74
71.25
80.15
89.06
23.75
26.72
29.69
5
118.74
89.06
29.69
Operating Expenses
The annual operating expenses are estimated at Rs 250.53 lakhs (70% capacity utilization) is as given
below:
Sl No
1
2
3
4
5
6
7
8
9
10
Total
Particulars
Annual Land Charges
Raw materials
Utilities
Wages & Salaries
Overheads
Selling expenses
Packing expenses
Interest on term loan
Interest on Bank Finance for Working Capital
Depreciation
Rs in lakhs
0.16
182.30
6.88
12.68
2.81
8.19
8.19
13.77
9.35
6.21
250.53
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15.11
Mott MacDonald
NEDFi
Profitability Estimates
(Rs. in Lakhs)
Sl No Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
15.12
Yr -1
Yr-2
Year
Yr -3
360
70%
252
360
80%
288
360
90%
324
360
100%
360
360
100%
360
328
374
421
468
468
187
7
3
13
8
8
0
0
226
102
214
7
3
13
9
9
23
0
278
97
240
7
3
13
11
11
23
0
307
114
267
7
3
13
12
12
23
0
336
132
267
7
3
13
12
12
23
0
336
132
14
9
23
6.2
73
24
49
14
11
24
6.2
66
22
44
10
12
22
6.2
86
28
58
7
13
20
6.2
106
35
71
3
13
17
6.2
109
36
73
Yr -4
Yr-5
Financial Indicators
Yr -1
328
Yr-2
374
Yr -3
421
Yr -4
468
Yr-5
468
13
8
6
1
7
3
14
13
9
6
1
7
3
14
13
11
6
1
7
3
10
13
12
6
1
7
3
7
13
12
6
1
7
3
3
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Loan Repayment
Total Fixed Costs
Variable Cost
Raw Materials
Packing
Interest On Working Capital Loans
Total Variable Costs
Contribution
Breakeven In %
Average Breakeven In %
Mott MacDonald
NEDFi
52
23
76
23
74
23
72
23
68
187
8
9.35
204
123
42%
44%
214
9
10.69
234
141
54%
240
11
12.02
263
158
47%
267
12
13.36
292
176
41%
267
12
13.36
292
176
39%
The IRR for the project is 25.1%, Average ROI is 85% and average DSCR is 2.98.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
LT Loan Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
1
328
72.53
48.60
13.77
6.21
0.00
76%
85%
2
374
66.02
44.23
13.77
6.21
22.95
70%
13.77
68.57
4.98
2.98
36.72
64.21
1.75
Year of Operation
3
4
421
468
85.89
105.77
57.55
70.86
10.33
6.88
6.21
6.21
22.95
22.95
84%
97%
33.27
74.08
2.23
29.83
83.96
2.81
5
468
109.21
73.17
3.44
6.21
22.95
97%
26.39
82.82
3.14
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16
16.1
Introduction
Mott MacDonald
NEDFi
Blow moulded products made from Polypropylene offer excellent combination of good strength,
contact clarity, creep resistance, excellent sealing characteristics, environmental stress and crack
resistance. These are being used in sectors like Cosmetics, Pharmaceuticals, laboratory ware and liquid
packaging.
16.2
Market Potential
Keeping in view the pattern of usage 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 the other hand the
water storage tank for domestic purpose, it is estimated that at present about 60,000 MT of plastic tank
equivalent to 10, 80,000 pieces of 1000 litres capacity are required annually. There are 8-10 blow
moulding units in the north eastern region. The production of these units is limited and bulk of the
requirement is being met from outside sources, the leading brands being Brite and Prince.
16.3
Plant Capacity
The installed capacity for production of Jugs, Mugs, and Buckets would be 81 MT. This would mean
that approximately 6,55,000 nos of the above 3 articles is expected to be produced. The plant is
expected to run single shift of 8 hours for a total 300 days per annum.
16.4
(i)
Manufacturing Process
The main product is proposed to be manufactured on a semi automatic extrusion blow moulding
machine. The main process steps involved are:
Plastic material in the form of granules is subjected to heat and pressure in an extruder.
Semi-molten plastic in extruder passed through the nozzle known as parison. Adjustments have to
be made in the machine to vary the wall thickness of the parison.
Suitable parison is then inserted in a female mould and air is blown into parison to force the molten
plastic against the sides of the mould.
The material is then cooled before removal from the mould.
The article is then trimmed to remove flashes.
(ii)
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o screw extruder motor, variable speed drive and electrical control cabinet
o Cross head dies (single, double and triple cores) and spacer
o Mould closing and opening unit with hydraulic System
Compressor with motor
Water Pump with
Moulds, dies, tools etc
(iii)
The following is a list of plant and machinery manufacturers for the blow moulding products.
Sl No
1
2
3
16.5
Name
M/s Ahura Industrial Engineers
Communication Address
18, Sidhpura Industrial Estate
Tarun Compound,SV Road Goregaon,
Andheri (East),Mumbai 400 062
M/s Boolani Engineering Corporation
402, Prabhadevi Industrial Estate
Savarkar Road, Mumbai 400 018
M/s
Brimco
Plastic
Machinery Plot 55, Govt. Kandivli Industrial
Corporation
Estate,Kandivli (West),
Mumbai 400 067
M/s Universal Machinery Services
Tarun Compound, SV Road, Goregaon,
Andheri (East)
Mumbai 400 062
Raw Material & Utilities Requirement
The major raw material required is PP. About 83 MT of PP is required per year. At a cost of Rs 64 per
kg inclusive of state tax, customs duty, transportation charges etc.
Total wt in gms
50
40
300
Annual Tonnage in MT
7.5
12
61.5
82.62
The utilities required are power and water. Around 75 KW of Power and 4500 KLPA of water are
required.
16.6
The total land area required is 300 square metres and the build up area is 200 square metres.
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16.7
Mott MacDonald
NEDFi
Manpower Requirement
The total manpower requirement is 14 nos out of which administrative is 4 and factory staff is 10.
Staff
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi skilled workers
Unskilled Workers
Peon/Watchman
Total
16.8
Nos
1
1
1
1
5
2
2
1
14
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 64.47 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Particulars
Rs in Lakhs
0.60
16.00
29.26
7.35
1.20
6.99
3.07
64.47
Rs in lakhs
16.12
48.35
64.47
Particulars
Years of Operation
2
3
4
1
1
2
3
Net WC
27.94
20.96
6.99
31.36
23.52
7.84
34.84
26.13
8.71
34.84
26.13
8.71
5
34.84
26.13
8.71
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16.10
Mott MacDonald
NEDFi
Operating Expenses
The annual operating expenses estimated at Rs 85.90 Lakhs (80% capacity utilization) as given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.07
2
Raw materials
50.20
3
Utilities
5.97
4
Wages & Salaries
9.53
5
Overheads
1.70
6
Selling expenses
2.90
7
Packing expenses
2.90
8
Interest on term loan
7.25
9
Interest on Bank Finance for Working Capital
3.14
10
Depreciation
2.25
Total
85.90
16.11
Profitability Estimates
(Rs in Lakhs)
Sl No
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Yr -1
Yr-2
Year
Yr -3
81
80%
66
81
90%
73
81
100%
81
81
100%
81
81
100%
81
116
130
145
145
145
47
6
2
8
3
3
0
0.07
68
47
52
6
2
8
3
3
12
0.07
74
56
58
6
2
8
4
4
12
0.07
80
64
58
6
2
8
4
4
12
0.07
80
64
58
6
2
8
4
4
12
0.07
80
64
7
3
10
2.2
35
11
7
4
11
2.2
43
14
5
4
9
2.2
53
17
4
4
8
2.2
54
18
2
4
6
2.2
56
19
Yr -4
Yr-5
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Mott MacDonald
NEDFi
29
35
36
38
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
116
130
145
145
145
8
3
2
1
6
2
7
29
8
3
2
1
6
2
7
12
41
8
4
2
1
6
2
7
12
41
8
4
2
1
6
2
7
12
41
8
4
2
1
6
2
7
12
41
47
3
3.14
53
62
46%
52%
52
3
3.53
59
71
58%
58
4
3.92
66
79
52%
58
4
3.92
66
79
52%
58
4
3.92
66
79
52%
Financial Indicators
The IRR for the project is 26.3%, Average ROI is 86% and average DSCR is 2.93.
1
Year of Operation
3
116
34.77
23.30
7.25
0.00
2.25
0.00
0.00
69%
86%
130
43.27
28.99
7.25
0.00
2.25
12.09
0.00
82%
145
52.64
35.27
5.44
0.00
2.25
12.09
0.00
94%
145
54.46
36.49
3.63
0.00
2.25
12.09
0.00
94%
145
56.27
37.70
1.81
0.00
2.25
12.09
0.00
94%
7.25
32.80
4.52
19.34
38.49
1.99
17.53
42.96
2.45
15.72
42.36
2.70
13.90
41.76
3.00
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
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Average DSCR
Mott MacDonald
NEDFi
2.93
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17
Moulded Luggage
17.1
Introduction
Mott MacDonald
NEDFi
Plastic luggages like Brief Cases, Suitcases etc. are manufactured from high-density polyethylene,
ABS plastics, polypropylene and glass reinforced plastic etc. Its main application is for string of items
while travelling. This type of luggage is tailor-made, sometimes, for different applications i.e. for
delicate use like ladies vanity cases, moderate use like ordinary travelling bags or rough use while on
tour. New designs and shapes are being constantly developed to facilitate easy handling while
travelling which offers increasing durability. Luggage bags are being developed using new and
tougher grades of plastic resins, sometimes reinforced with glass fibre and other fillers, to improve
certain specific properties as well as to reduce the cost.
17.2
Market Potential
There is a vast market available for luggage and considering the population of our country; there is
ample scope for growth of this industry. Tailor-made luggage is available to cater to the needs of
different income groups people and for a variety of applications. Use of plastic in luggage industry is
ever increasing and it will go on replacing other conventional materials such as wood, ply, metal,
leather etc. rapidly. There is a good scope for luggage items in the international market also.
17.3
Plant Capacity
The plant is slated to produce 66,000 nos of moulded luggage of 16, 18 and 20 Brief case.
17.4
(i)
Manufacturing Process
The required raw material is fed into the hopper of the injection-moulding machine and heated in the
cylinder. The required mould is kept in the locking unit. The plastic melt is stored in front of the screw
in a small adjustable chamber. The predetermined volume of plastic melt is injected into the closed
mould at a very high pressure by forward motion of screw. After 5 to 15 seconds, the solidification of
plastic fed melt being in the mould (which is constantly cooled by cold water circulation), the injected
material is kept under pressure for sometime to ensure adequate filling of the mould and to prevent
back-flow of material.
Further time is allowed to lapse for cooling and material is ejected from the mould when it becomes
rigid by air stream or by mechanical ejectors. After the two parts of the item are ready, metallic
fittings, locks, handles etc. are fixed as per requirement of the luggage.
(ii)
Technology required for the project is simple and is normally being supplied by the machinery
suppliers.
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Mott MacDonald
NEDFi
The following is the list of plant and machinery suppliers of the above equipments.
Sl No
1
2
3
4
17.5
Name
M/s. DGP Windsor India Ltd.
Communication Address
E-6, U2 Road,Wogle Industrial Estate,
Thane-400604
M/s. Sunanda Industrial Machinery, A 109, Standard House,83, Maharishi Karup
Division of Mafatlal Industries Ltd.
Road, Mumbai
M/s. Indian Hydraulic Inds. Pvt. Ltd
70, Shivaji Marg Indl. Area
New Delhi-15
M/s. Ferromatik Milacron India Ltd.
Plot No. 92, Phase-1 G.I.D.C Vatva,
Ahmedabad-382445.
Raw Material & Utilities Requirement
The major raw material required for the project would be HDPE of injection moulding grade, metallic
fixtures / locks and Rexene as per the no of pieces of luggage produced. The raw material required
would be around 45 MT at 100% capacity utilisation.
The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from the fourth year onwards of its operation.
The utilities required are power and water. Around 90 KW of Power and 6000 KLPA of water are
required.
17.6
The total land area is 500 sq metres and the built up area is 250 sq mt.
17.7
Manpower Requirement
Personnel
Nos
3
3
2
2
20
15
8
2
55
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
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17.8
Mott MacDonald
NEDFi
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost of Rs 111.22 Lakhs is as follows.
Sl No
1
2
3
4
5
6
7
Fixed Capital
Rs in Lakhs
1.00
20.00
63.27
7.94
2.08
11.64
5.30
111.22
The project cost may be financed with a debt: equity ratio of 3: 1 as follows.
Means of Finance
Equity
Debt
Total
17.9
Rs in lakhs
27.81
83.42
111.22
Particulars
1
1
2
3
17.10
46.56
34.92
11.64
Years of Operation
2
3
4
53.21
39.91
13.30
59.86
44.90
14.97
66.51
49.88
16.63
5
66.51
49.88
16.63
Operating Expenses
The annual operating expenses estimated at Rs 112.84 lakhs (70% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.115
2
Raw materials
44.92
3
Utilities
7.46
4
Wages & Salaries
23.88
5
Overheads
4.24
6
Selling expenses
4.92
7
Packing expenses
4.92
8
Interest on term loan
12.51
9
Interest on Bank Finance for Working Capital
5.24
10
Depreciation
4.63
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NEDFi
Total
17.11
Sl No
Profitability Estimates
Particulars
Production/Sales
Installed Capacity in lakh nos
Capacity Utilization
Estimated Production in lakh nos
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
17.12
112.84
Yr -1
Yr-2
Year
Yr -3
0.66
70%
0.46
0.66
80%
0.53
0.66
90%
0.59
0.66
100%
0.66
0.66
100%
0.66
197
225
253
281
281
68
7
4
24
5
5
0
0
114
83
78
7
4
24
6
6
21
0
146
79
87
7
4
24
6
6
21
0
157
96
97
7
4
24
7
7
21
0
168
113
97
7
4
24
7
7
21
0
168
113
13
5
18
5
61
20
41
13
6
18
5
56
19
37
9
7
16
5
76
25
50
6
7
14
5
95
32
63
3
7
11
5
98
33
65
Yr -4
Yr-5
Financial Indicators
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
197
225
253
281
281
24
5
5
2
7
4
13
24
6
5
2
7
4
13
24
6
5
2
7
4
9
24
7
5
2
7
4
6
24
7
5
2
7
4
3
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Loan Repayment
Total Fixed Costs
Variable Cost
Raw Materials
Packing
Interest On Working Capital Loans
Total Variable Costs
Contribution
Breakeven In %
Average Breakeven In %
Mott MacDonald
NEDFi
59
21
81
21
78
21
76
21
73
68
5
5.24
78
119
50%
50%
78
6
5.99
89
136
60%
87
6
6.73
101
153
51%
97
7
7.48
112
170
45%
97
7
7.48
112
170
43%
The IRR for the project is 21% , Average ROI is 82% and average DSCR is 2.83.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
1
197
60.94
40.52
12.51
0.00
4.63
0.00
0.00
70%
82%
12.51
57.66
4.61
2.83
Year of Operation
2
3
4
225
253
281
56.34
75.72
95.10
37.47
50.35
63.24
12.51
9.38
6.26
0.00
0.00
0.00
4.63
4.63
4.63
20.85
20.85
20.85
0.00
0.00
0.00
66%
81%
95%
5
281
98.23
65.32
3.13
0.00
4.63
20.85
0.00
95%
33.37
54.60
1.64
23.98
73.08
3.05
30.24
64.37
2.13
27.11
74.13
2.73
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18
Synthetic Wood
18.1
Introduction
Mott MacDonald
NEDFi
Plastic Lumber is a new plastic material having similar characteristics to wood. It is being promoted as
an alternate material for wood in furniture, building construction, marine construction and also in
chemical industries. This material has been well received in developed countries because of the
growing awareness about the need to maintain ecological balance and depleting forest resources.
18.2
Market Potential
Plastic Lumber could be used for numerous end use applications. Chiefly, it is used as an alternative to
timber. In general, its applications could be classified into the following categories of manufacturing
convenience furniture like office, restaurant furniture etc. It could also be used for making table tops,
partitions, cupboards, doors, windows etc.
The properties of plastic lumber which make it unique are the following:
Stain resistant
Graffiti-proof
Waterproof
UV resistant
Impervious to insects
Requires no painting or sealing (plastic lumber is available in almost any color and some
wood-composite plastic lumber can be painted as if it were wood)
Provides a good shock-absorbing surface for pedestrian traffic, such as runners and hikers
18.3
Plant Capacity
The typical size of the project for manufacture of plastic lumber could have an installed capacity of
144 MT per annum. This would mean that approx 4-20 kgs of plastic lumber could be manufactured at
100% capacity utilisation.
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18.4
(i)
Manufacturing Process
Mott MacDonald
NEDFi
Recycled plastic lumber has been in manufactured since the early 1980s. Plastic lumber is most
commonly manufactured from post-consumer high density polyethylene (HDPE), but linear low
density polyethylene (LLDPE) and low density polyethylene (LDPE) are also used.
These plastic feed stocks are derived from such raw materials as post-consumer milk jugs, soda
bottles, grocery bags, plastic wrap, bubble rap, detergent bottles, and water bottles, and other used
plastic commodities.
The recovered plastic is cleaned, shredded, and ground using plastic shredders and Granulators. The
material is then run through plastic extruders and mixed with foaming agents, UV stabilizers, and
color pigments to form plastic wood.
(ii)
Two main methods are used to manufacture plastic lumber. These are Flow Moulding and Plastic
Extrusion. Both methods incorporate plastic extruders in the process but differ in the forming
technique.
The specific forming process, either flow moulding or extrusion is dictated by the size and shape of
the "Recycled Plastic Lumber" to be manufactured.
If the board is a large piece with a length of no more than ten feet, then one can consider flow
moulding. Flow moulding is the process of extruding melted plastic directly from the plastic extruder
into a mould of the shape required. However shapes those are to long or too thin will create excessive
pressure during the filling of the plastic lumber mould to be used successfully.
A long board of recycled plastic lumber should be manufactured by using "In Line Plastic Extrusion."
This is a process where the recycled plastic is continually extruded through a die into a forming tank
and then is cut to length.
(iii)
The following is the list of plant and machinery suppliers of the above equipments.
Sl No
1
Name
Multitech Engineers
Communication Address
Nr.ESIS Hospital,Opp Shri Guru Nanak
Gurudwara, Ulhasnagar No.2, Thane, 421002,
Maharashtra, India
52, Bindal Industrial Estate, Sakinaka, Andheri
(East), Mumbai 72, India
18.5
The major raw material required for the project would be recycled HDPE bottles. In addition, master
batches are added to add colour. The raw material including HDPE bottles and master batches would
be around 150 MT at 100% capacity utilisation.
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The unit has been assumed to operate at 80% and 90% of its installed capacity in the first and second
year and at 100% capacity from the third year and onwards of its operation.
The utilities required are power and water. Around 55 KW of Power and 900 KLPA of water are
required.
18.6
The total land area is 750 sq metres and the built up area is 500 sq mt.
18.7
Manpower Requirement
Total manpower required would be 16 Nos of which administrative is 4 and factory staff is 12.
Additional benefits at the rate of 25% have been considered.
Personnel
Nos
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
18.8
1
1
1
1
6
3
2
1
16
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 84.47 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Total
Rs in Lakhs
1.50
40.00
23.33
7.61
1.58
6.43
4.02
84.47
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Rs in lakhs
Promoters contribution
Term Loan
21.12
63.35
107
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Total
18.9
84.47
Particulars
Years of Operation
2
3
4
1
1
2
3
18.10
25.70
19.28
6.43
28.92
21.69
7.23
32.13
24.10
8.03
32.13
24.10
8.03
32.13
24.10
8.03
Operating Expenses
The annual operating expenses estimated at Rs 58.92 lakhs (80% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.17
2
Raw materials
19.74
3
Utilities
5.43
4
Wages & Salaries
8.46
5
Administrative Overheads
4.08
6
Selling expenses
2.88
7
Packing expenses
2.88
8
Interest on term loan
9.50
9
Interest on Bank Finance for Working Capital
2.89
10
Depreciation
2.89
Total
58.92
18.11
Sl No
Profitability Estimates
Yr -1
Yr-2
Year
Yr -3
144
80%
115
144
90%
130
144
100%
144
144
100%
144
144
100%
144
115
130
144
144
144
20
5
4
11
3
3
0
22
5
4
11
3
3
16
25
5
4
11
4
4
16
25
5
4
11
4
4
16
25
5
4
11
4
4
16
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Yr -4
Yr-5
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Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
18.12
Mott MacDonald
NEDFi
0.17
46
69
0.17
65
65
0.17
68
76
0.17
68
76
0.17
68
76
10
3
12
3
54
18
36
10
3
13
3
49
16
33
7
4
11
3
62
21
42
5
4
8
3
65
22
43
2
4
6
3
67
23
45
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
115
130
144
144
144
11
3
3
1
5
4
10
37
11
3
3
1
5
4
16
10
53
11
4
3
1
5
4
16
7
51
11
4
3
1
5
4
16
5
48
11
4
3
1
5
4
16
2
46
20
3
2.89
25
90
41%
45%
22
3
3.25
29
101
52%
25
4
3.61
32
112
45%
25
4
3.61
32
112
43%
25
4
3.61
32
112
41%
Financial Indicators
The IRR for the project is 23.2%, Average ROI is 82% and average DSCR is 2.87.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Year of Operation
3
115
54.21
36.05
9.50
0.00
130
49.23
32.73
9.50
0.00
144
62.46
41.53
7.13
0.00
144
64.83
43.11
4.75
0.00
144
67.21
44.69
2.38
0.00
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Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Mott MacDonald
NEDFi
2.89
0.00
0.00
79%
82%
2.89
15.84
0.00
73%
2.89
15.84
0.00
86%
2.89
15.84
0.00
86%
2.89
15.84
0.00
86%
9.50
48.44
5.10
2.87
25.34
45.12
1.78
22.96
51.55
2.24
20.59
50.75
2.46
18.21
49.96
2.74
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19
19.1
Introduction
Mott MacDonald
NEDFi
LLDPE multilayer films are widely used in packaging applications, where wrappings must not affect
contents and at the same time protect from damage and exposure to contaminants. In modern times,
Flexible Plastic Packaging (FPP) has become part & parcel of life of human being. Packaging is being
used in almost all context, may be it household or articles of daily use, to wide variety of materials.
Multi Layer co-extrusion blown films is made of suitable combination of PA, EVOH, LLDPE, LDPE,
EVA & need-based tie / binding materials. These films are very useful to store various foods,
agricultural products, medical apparatus, pesticides chemicals, daily use articles & war industry
articles. Thus PE multilayer films have very high demand potential in local as well as overseas market.
Multi Layer Films are used for
General purpose packaging of food/non-food products
Over wrap application as cling/stretch film
Lamination of heat seal performance
19.2
Market Potential
LLDPE films also meet the criteria for approval for use in the food industry. They also have good
mechanical property, are recyclable and are economically viable. In addition, they may be heat shrunk,
that is they may be subjected to a heat source to shrink the film around a product for improved
packaging.
The multi layer films obtained by co-extrusion method are suitable for Snack foods, crisps,
confectionery, ice creams, biscuits, chocolates, bakery products, cheese, dried vegetables, dried fruits,
frozen vegetables, pies, crusty breads, bacon, coffee, cooked meat, fresh meat, dried soups, dried milk,
margarine, butter tubs, juices, non carbonate beverages, spices & cereals, fresh cut agricultural
produce, flowers etc.
There is good export potential for Multilayer films. Changing life style has created a market for wide
variety of goods including ready-to-eat food products, dairy products, and many household products.
This drives the growth of FPP industry in India and abroad alike.
19.3
Plant Capacity
The typical size of the project for manufacture of LLDPE multilayer film could have an installed
capacity of 144 MT per annum.
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19.4
(i)
Manufacturing Process
Mott MacDonald
NEDFi
Multi-layer Polyethylene (PE) film produce by the Blown Co-extrusion Process based on coextrusion concept. The manufacture of 3 layer composite film requires 3 extruders feeding resin
through hoppers into a single die. Each extruder processes specific material and is fed through a
common spiral, mandrel and the layers are brought together in the die. The film passes through a
common sizing calibrator into collapsible boards to the top nip roller which is water- cooled. The
platform on which the extruders are mounted may be rotated or the nip roller rotated to minimize
thickness variation, form the nip roll, the film made is passed through a corona treater to the turret
winder station.
(ii)
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NEDFi
The following is the list of plant and machinery suppliers of the above equipments.
Sl No
1
Name
Sai Machine Tools Pvt. Ltd
Communication Address
Plot No. 23, Sector A, Sanwer Road Industrial
Area, Indore - 452 015 (M.P.) India
Wz-106/56, Rajouri Garden Extn. New Delhi110027 (India)
Kolsite House, Veera Desai Road, Andheri
(West), Mumbai 400 053, Maharashtra, India
19.5
The major raw material required for the project would be LLDPE. The raw material required would be
around 147 MT at 100% capacity utilisation.
The unit has been assumed to operate at 80% and 90% of its installed capacity in the first & second
year and at 100% of its capacity from the third year and onwards of its operation.
The utilities required are power and water. Around 20 KW of Power and 450 KLPA of water are
required.
19.6
The total land area is 700 sq metres and the built up area is 500 sq mt.
19.7
Manpower Requirement
Total manpower required would be 13 Nos of which administrative is 4 and factory staff is 9.
Personnel
Nos
1
1
1
1
4
2
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
113
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Unskilled Workers
Peon/Watchman
Total
19.8
2
1
13
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 86.14 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Total
Particulars
Rs in Lakhs
1.40
40.00
20.77
7.29
1.61
10.97
4.10
86.14
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Promoters contribution
Term Loan
Total
19.9
Rs in lakhs
21.54
64.61
86.14
Particulars
1
1
2
3
19.10
43.89
32.92
10.97
Years of Operation
2
3
4
50.63
37.97
12.66
56.26
42.19
14.06
56.26
42.19
14.06
5
56.26
42.19
14.06
Operating Expenses
The annual operating expenses estimated at Rs 124.06 lakhs (80% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.15
2
Raw materials
83.34
3
Utilities
1.31
4
Wages & Salaries
8.93
5
Overheads
4.03
6
Selling expenses
4.46
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7
8
9
10
19.11
Sl No
Packing expenses
Interest on term loan
Interest on Bank Finance for Working Capital
Depreciation
Total
4.46
9.69
4.94
2.74
124.06
Profitability Estimates
Particulars
Production/Sales
Installed Capacity in nos
Capacity Utilization
Estimated Production in nos
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
19.12
Mott MacDonald
NEDFi
Yr -1
Yr-2
Year
Yr -3
144
80%
115
144
90%
130
144
100%
144
144
100%
144
144
100%
144
179
201
223
223
223
83
1
4
9
4
4
0
0.15
107
72
94
1
4
9
5
5
16
0.15
134
67
104
1
4
9
6
6
16
0.15
146
77
104
1
4
9
6
6
16
0.15
146
77
104
1
4
9
6
6
16
0.15
146
77
10
5
15
3
55
18
36
10
6
15
3
48
16
32
7
6
14
3
61
20
41
5
6
11
3
63
21
42
2
6
9
3
66
22
44
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
179
201
223
223
223
9
4
3
9
5
3
9
6
3
9
6
3
9
6
3
Yr -4
Yr-5
Financial Indicators
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1
1
4
10
32
1
1
4
10
16
49
1
1
4
7
16
47
1
1
4
5
16
45
1
1
4
2
16
42
83
4
4.94
93
86
38%
43%
94
5
5.70
104
96
51%
104
6
6.33
116
107
44%
104
6
6.33
116
107
42%
104
6
6.33
116
107
40%
The IRR for the project is 20.6%, Average ROI is 79% and average DSCR is 2.78.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
4
179
54.50
36.24
9.69
0.00
2.74
0.00
0.00
78%
79%
201
48.38
32.17
9.69
0.00
2.74
16.15
0.00
71%
223
60.96
40.54
7.27
0.00
2.74
16.15
0.00
82%
223
63.38
42.15
4.85
0.00
2.74
16.15
0.00
82%
223
65.80
43.76
2.42
0.00
2.74
16.15
0.00
82%
9.69
48.68
5.02
2.78
25.84
44.60
1.73
23.42
50.54
2.16
21.00
49.73
2.37
18.57
48.92
2.63
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20
Water Tanks
20.1
Introduction
Mott MacDonald
NEDFi
Roto Moulded Plastic Water Storage Tanks are made from Linear Low Density Polyethylene/Low
Density Polyethylene. These tanks are light in weight therefore, it is easy to fix them at the place of
choice. These tanks require no painting, no rotational moulding, product is formed inside a closed
mould rotating biaxial in two plains perpendicular to each other. In batch type-rock-N-Roll type
Rotational Moulding machines, frame of the machine is turned in a primary axis while mould is
rotated in secondary axis.
As rotational moulding does not involve any injection pressure and high shear rates, this process offers
certain basic advantages over other processes and techniques of plastic processing.
Multiple product and multi colours can be moulded at the same time
Minimum wastages.
These tanks keep water clean, odour free and maintain the quality of water stores intact. These tanks
are economical, practical and hygienic alternative of storing potable water in single or multi storied
residential units, industrial set-ups, commercial establishments and sites everywhere under the sun.
These tanks are becoming increasingly popular in India and have caught the eyes of many users for
their requirement of storing water for domestic and other purposes. These tanks are also used in
hostels, hospitals, schools, cinema houses and construction sites.
20.2
Market Potential
Roto-moulded Plastic Water storage tanks being lighter in weight are easy in handling and can be
easily fitted at any desired place, and are hence preferred and practically replacing the conventional
tanks of steel, cement concrete or stone. These tanks are available in market in various sizes and
shapes. The prices of these tanks are at the rate of Rs. 3 per litre of water capacity approximately. The
demand of plastic water storage tanks is increasing day-by-day. They are not only installed in the
individual houses and flats but are also fitted in factories, group housing schemes and multi-storeyed
buildings as well.
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Due to increase in the house building activities and preference given by the Government to provide
homes to the homeless people, the demand for plastic water storage tanks is likely to increase in the
years to come. Hence there is a good scope for establishing a few units for the manufacture of water
storage tanks by Roto Moulded process.
20.3
Plant Capacity
At 100% capacity utilisation, the plant is expected to produce 14640 nos of water tanks ranging in
capacity from 500 litres to 2000 litres. The plant is expected to run single shift of 8 hours with
operational days of 300.
20.4
(i)
Manufacturing Process
The HDPE granules are mixed with granules of black colour concentrates. These are extruded and
strands are chopped as granules so as to achieve uniform distribution of carbon black. The granules are
pulverized in a special pulverization system from 30 to 40- mesh powder. This powder is fed in the
mould in the required quantity. The burners of the Roto Moulding Machine are fired with the help of
LPG or Diesel and the moulds are heated to 300C. Molten powders when rotated in the heated
moulds form hollow storage tank. White inner coating is given for better finish. After proper time
when the tank is ready, the mould is cooled and opened and the tank is taken out. Finishing of the
tanks is done manually.
Roto Moulded Tanks are manufactured as per IS 12701:1989. This standard covers the requirements
of materials, dimensions, construction shape, tolerances on dimensions, fittings, workmanship,
performance requirements and inspection and testing of rotational moulded polythene water storages
tanks.
This standard is applicable only to water storage tanks subject to the following two conditions:
Own hydrostatic head of water
Tank with uniform flat base support
The internal and external surface of the water storage tank should be smooth, clean and free from other
hidden internal defects, such as air bubbles, pits and metallic or other foreign material inclusions. The
mould parting line and excess material near the top rim of the tank should be cut and finished to the
required leave Defects like air bubbles and pits at mould parting line and at top rim of the main man
hole should be repaired by hot air filler rod welding method.
(ii)
The major equipment required by the unit for manufacturing plastic water tanks are as follows:
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The following is the list of plant and machinery suppliers of the above equipments.
Sl No
1
Name
M/s. National Plastics
20.5
Communication Address
Plot No. 84, G.I.D.C., Odhav,
Ahmedabad-382415.
22-26 A, Industrial Estate,
22, Godam, Jaipur.
B-45, Lawrence Road,
New Delhi-35.
P. B. No. 479, V.B. Gandhi Road,
Fort, Mumbai-400023.
71, Nehru Place,
New Delhi-110019.
The main raw material required for manufacturing plastic water tanks is HDPE and black master
batch. HDPE is available at the rate of Rs 62 per kg inclusive of tax, customs duty, transportation etc.
Black master batch is usually taken at 2% of the HDPE requirement and is priced at Rs 90 per kg.
The utilities required are power and water. Around 135 KW of Power and 4500 KLPA of water are
required.
20.6
The total land area is 1700 sq metres and the built up area is 1250 sq mt.
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20.7
Mott MacDonald
NEDFi
Manpower Requirement
Total manpower required would be 14 Nos of which administrative is 4 and factory staff is 10.
Personnel
Nos
1
1
1
1
5
2
2
1
14
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
20.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 210.90 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Total
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Rs in Lakhs
3.40
100.00
58.66
8.36
3.94
26.50
10.04
210.90
The project cost may be financed under a debt equity ratio of 3: 1 as follows:
Means of Finance
Equity
Debt
Total
20.9
Rs in lakhs
52.72
158.17
210.90
Particulars
1
1
2
Net WC
Available Bank Finance
106.01
79.51
Years of Operation
2
3
4
121.15
90.86
136.30
102.22
151.44
113.58
5
151.44
113.58
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Margin Money
20.10
26.50
30.29
Mott MacDonald
NEDFi
34.07
37.86
37.86
Operating Expenses
The annual operating expenses estimated at Rs 306.75 lakhs (70% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.39
2
Raw materials
220.75
3
Utilities
7.58
4
Wages & Salaries
9.53
5
Overheads
5.39
6
Selling expenses
10.66
7
Packing expenses
10.66
8
Interest on term loan
23.73
9
Interest on Bank Finance for Working Capital
11.93
10
Depreciation
6.53
Total
306.75
20.11
Sl No
Profitability Estimates
Particulars
Production/Sales
Installed Capacity in nos
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Yr -1
Yr-2
Year
Yr -3
14640
70%
10248
14640
80%
11712
14640
90%
13176
14640
100%
14640
14640
100%
14640
426
487
548
609
609
215
8
5
10
11
11
0
0
259
167
246
8
5
10
12
12
40
0
333
155
276
8
5
10
14
14
40
0
366
182
307
8
5
10
15
15
40
0
400
209
307
8
5
10
15
15
40
0
400
209
24
12
36
7
125
42
24
14
37
7
111
37
18
15
33
7
142
48
12
17
29
7
174
58
6
17
23
7
179
60
Yr -4
Yr-5
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Mott MacDonald
NEDFi
74
95
115
119
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
426
487
548
609
609
10
11
7
3
8
5
24
66
10
12
7
3
8
5
24
40
108
10
14
7
3
8
5
18
40
103
10
15
7
3
8
5
12
40
99
10
15
7
3
8
5
6
40
93
215
11
11.93
238
189
35%
40%
246
12
13.63
272
216
50%
276
14
15.33
305
243
43%
307
15
17.04
339
270
37%
307
15
17.04
339
270
34%
Financial Indicators
The IRR for the project is 20%, Average ROI is 80% and average DSCR is 2.80.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
LT Loan Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
426
124.90
83.06
23.73
6.53
0.00
74%
80%
487
110.79
73.68
23.73
6.53
39.54
67%
23.73
113.31
4.78
2.80
63.27
103.93
1.64
548
142.16
94.54
17.79
6.53
39.54
79%
609
173.52
115.39
11.86
6.53
39.54
91%
609
179.46
119.34
5.93
6.53
39.54
91%
57.34
118.86
2.07
51.41
133.79
2.60
45.47
131.80
2.90
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21
Plastic Crates
21.1
Introduction
Mott MacDonald
NEDFi
Crates are material handling containers which can be used for storage, transport or distribution and
handling of products. Traditionally crates in India were manufactured from wood but with
developments in plastics processing and conservation of environment issues gaining importance in
developed societies, most of the material handling crates are being manufactured to size to suit the end
use, but are predominantly made from High Density Polyethylene (HDPE) and sometimes from
Polypropylene (PP). These injection moulded crates have a long life and are easy to handle due to its
light weight, and have many other advantages over the traditional wooden crates.
The advantages of using plastic crates are:
Have fairly long life and are suitable for multiple trips.
Good resistance to chemicals and harsh environment. Can be made in variety of colors and
hence have better sales appeal.
21.2
Market Potential
In India, at present there are several manufacturers of large injection moulded crates. This segment of
business is dominated mainly by organized sector players. The major players in injection moulded
crates are:
Bright Brothers
Prince Plastics
Synthetic Moulders
Gold Plast
The following is the sectors and the use of crates in these sectors.
Sector
Use
123
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Following types of crates are generally available in Market and are popular amongst end-users.
Fully closed crates - with all surfaces of crates in solid except top.
Totally grilled crates - with all sides and bottom also grilled.
Folding crates - entire crate can be folded to a flat assembly to save space when not in use.
Bins - modified shape of crate so that contents can be removed from front without unloading the
bins stacked over it.
Stacking and nesting crates - height of crate can be reduced when stored in nesting positions.
Soft drink crates - these are available with partitions to separate bottles rattling with each other.
The traditional segments of crates experience stiff competition and hence, the crates manufacturers
are always in look out for newer and newer application. The demand for crates is increasing from a
diverse range of businesses. The usage of crates especially in agri business is full of promise as it has
demonstrated its superiority in handling, storing and transporting of agricultural produce by reducing
the damage level of food products by almost 30%. The entry of crates in agriculture is likely to
revolutionize the crates business and this segment is expected to drive the future growth of this
business.
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21.3
Mott MacDonald
NEDFi
Plant Capacity
The typical size of the project for manufacture of injection moulded crates could have an installed
capacity of 689 MT per annum. This would mean that 3 lakh pieces of crates having an average
weight of 2.25 kg per crate could be manufactured at 100% capacity utilisation.
21.4
(i)
Manufacturing Process
The manufacturing process of injection moulded crate is simple in concept. The Poly Propylene
granules are fed via a regulated hopper into a homogenous molten mass by application of heat and
shearing action of continuously rotating extruded screw, which also keeps pushing the plastic melt
forward. The melt gets collected at the forward end of the extruder cylinder and is pushed into the
mould cavity by the screw, now acting as a hydraulic piston. The mould is kept at pre-specified
temperature and once injected, the plastic melt is held under high pressure to ensure that the material
reaches all the ends of the mould. In crates moulding, the moulds used have comparatively very large
depth.
The mould is opened after plastic melt has solidified sufficiently and the moulded item is ejected by
means of ejector pins or plates. During the cooling cycle in the mould, the extruder screw prepares
another batch of plastic melt, ready to be injected, and thus the cycle goes on continuously. The
moulded articles usually do not require any finishing operation other than removal of wastage.
Otherwise, after visual inspection, they are kept for curing for about 40 to 50 hours and then
despatched.
(ii)
Name
M/S Bonhomie Plastics Pvt. Ltd.
21.5
Communication Address
14/a, Ujagar Indl. Estate, Next To Dukes,
Deonar,Mumbai-400088,Maharashtra
Plot No.3725, Phase IV, GIDC,Vatva I.E.,
Ahmedabad - 382445 India
Tel. No.:079 25840374 / 25841821.
Fax : 079 25840809.
The major raw material required for the project would be polypropylene / HDPE of injection moulding
grade. In addition, some stabilisers and additives would also be needed. The raw material required
would be around 689 MT at 100% capacity utilisation. The unit has been assumed to operate at 70%,
80% and 90% of its installed capacity in the first, second and third year and at 100% capacity from the
fourth year onwards of its operation.
The utilities required are power and water. Around 75 KW of Power and 600 KLPA of water are
required.
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21.6
Mott MacDonald
NEDFi
The total land area is 1000 sq metres and the built up area is 750 sq mt.
21.7
Manpower Requirement
Total manpower required would be 14 Nos of which administrative is 4 and factory staff is 10.
Personnel
Nos
Works Manager
1
Accountant-cum-Store Keeper
1
Administrative Assistant
1
Clerk
1
Skilled Workers
5
Semi Skilled Workers
2
Unskilled Workers
2
Peon/Watchman
1
Total
14
21.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost estimated at Rs 215.26 lakhs is as follows.
Sl No
1
2
3
4
5
6
7
Total
Project Cost
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Rs in Lakhs
2.00
60.00
94.91
7.80
4.02
36.28
10.25
215.26
Of this, the project cost may be financed with a debt equity ratio of 3:1 as under:
Means of Finance
Promoters contribution
Term Loan
Total
21.9
Rs in lakhs
53.81
161.44
215.26
Particulars
1
Years of Operation
2
3
4
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1
2
3
21.10
145.12
108.84
36.28
165.85
124.39
41.46
Mott MacDonald
NEDFi
186.58
139.93
46.64
207.31
155.48
51.83
207.31
155.48
51.83
Operating Expenses
The annual operating expenses estimated at Rs 432.56 lakhs (70% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.23
2
Raw materials
339.73
3
Utilities
4.38
4
Wages & Salaries
9.53
5
Overheads
3.50
6
Selling expenses
14.18
7
Packing Expenses
14.18
8
Interest on term loan
24.22
9
Interest on Bank Finance for Working Capital
16.33
10
Depreciation
6.52
Total
432.56
21.11
Sl No
Profitability Estimates
Particulars
Production/Sales
Installed Capacity in Lakh nos
Capacity Utilization
Estimated Production in lakh nos
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Yr -1
Yr-2
Year
Yr -3
3
70%
2.1
3
80%
2.4
3
90%
2.7
3
100%
3
3
100%
3
567
648
729
810
810
340
4
4
10
14
14
0
0
386
181
388
4
4
10
16
16
40
0
479
169
437
4
4
10
18
18
40
0
531
198
485
4
4
10
20
20
40
0
584
226
485
4
4
10
20
20
40
0
584
226
24
16
41
7
24
19
43
7
18
21
39
7
12
23
35
7
6
23
29
7
Yr -4
Yr-5
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45
89
Mott MacDonald
NEDFi
120
40
80
152
51
101
184
62
123
190
64
127
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
567
648
729
810
810
10
14
7
3
4
4
24
65
10
16
7
3
4
4
24
40
108
10
18
7
3
4
4
18
40
103
10
20
7
3
4
4
12
40
99
10
20
7
3
4
4
6
40
93
340
14
16.33
370
197
33%
38%
388
16
18.66
423
225
48%
437
18
20.99
476
253
41%
485
20
23.32
529
281
35%
485
20
23.32
529
281
33%
Financial Indicators
The IRR for the project is 22.8%, Average ROI is 83% and average DSCR is 2.90.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
Year of Operation
3
567
134.21
89.25
24.22
0.00
648
119.94
79.76
24.22
0.00
729
152.08
101.13
18.16
0.00
810
184.22
122.50
12.11
0.00
810
190.27
126.53
6.05
0.00
6.52
0.00
0.00
77%
83%
6.52
40.36
0.00
70%
6.52
40.36
0.00
82%
6.52
40.36
0.00
94%
6.52
40.36
0.00
94%
24.22
119.99
64.58
110.50
58.52
125.82
52.47
141.13
46.41
139.11
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DSCR
Average DSCR
4.95
2.90
1.71
2.15
Mott MacDonald
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2.69
3.00
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22
22.1
Introduction
Mott MacDonald
NEDFi
Polymer based Polyethylene Covers (Heavy Duty) include High Density Polyethylene tarpaulins and
covers. PE tarpaulins are woven High Density Polyethylene (HDPE) fabrics laminated with Linear
Low Density Polyethylene (L LDPE) film, welded ( heat sealed) at joints and edges, reinforced with
Polyethylene (PE) or Polypropylene (PP) rope hemming and eyelets provided at regular intervals all
round. PE covers however are HDPE Woven fabrics coated / laminated with LDPE and welded (heat
sealed) at joints. Polyethylene covers are usually not provided with rope hemming and eyelets.
The weight of HDPE tarpaulins in grams per square meter (gsm) ranges from 90 for lighter tarpaulins
to 270 for heavier tarpaulins. HDPE tarpaulin should conform to the bureau of Indian Standards IS
No: 7903-1984 which deals with the material specification, constructional details, properties, marking,
packing, sampling and testing procedure. There is no BIS standard dealing with covers other than
tarpaulins. However, for fumigation covers which are used for food grain storage, there is a standard
IS: 13217-1991.
22.2
Market Potential
Tarpaulins are used for various applications of protections from rain, dew, dust and sun for different
materials. They are used in the following listed applications:
Bale Wraps
Fumigation Covers
Tents
Roof Covers
Equipment Covers
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Traditionally cotton canvas tarpaulins have been used in many of the above uses but due to some of its
inherent drawbacks, HDPE tarpaulins have already captured market share in all above end use sectors.
This market share is presently small but is expanding and growing fast. In developed countries, HDPE
tarpaulins enjoy the largest market share among all types of tarpaulins.
Among large users of covers are Food Corporation of Indias (FCI) warehouses which instead of using
HDPE tarpaulins in large quantities, use fumigation covers manufactured from HDPE woven fabric
coated or laminated with low density polyethylene with no rope hemming, rope lashing, eyeleting etc.
These HDPE sheets are cheaper than HDPE tarpaulins and serve their purpose of covers for food
stocks. FCI also consumes cotton canvas tarpaulins and small quantities of HDPE tarpaulins.
In the transportation sector, trucks largely use cotton canvas tarpaulins. How ever, for truck liner
applications, they are now employing HDPE tarpaulin sheets. Defence authorities also regularly use
tarpaulins of heavier range but presently the use of HDPE tarpaulins is limited in this sector. Cement,
fertiliser and sugar manufacturing industries are also using HDPE tarpaulins which are witnessing
impressive growth trends.
22.3
Plant Capacity
Same plant and machinery can produce HDPE tarpaulins of different weights (gsm). The difference in
gsm is achieved by
The envisaged plant shall produce HDPE Tarpaulins and sheets rolls (covers) in the gsm of
100,125,150,180,200 and 250 with the flexibility to produce varying quantities of any grade. The unit
price per square meter of tarpaulin in each case will vary and increase as the gsm increases. However,
the price in terms of per kg weight of tarpaulins will remain the same and also the overall production
quantity will remain the same.
The installed capacity is 3500 Tonnes per annum.
22.4
(i)
Manufacturing Process
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Eyelet punching
Marking and Printing
Bailing and Packing
They are briefly described below:
Manufacture of tapes
HDPE granules of Raffia grade, the main raw material for tape manufacturing are mixed in the doser
with the required quantities of master batches for colouration and stabilisation and then extruded by a
screw configuration for metering, mixing, sheering, melting and final mixing to develop high pressure
to enable plastic material to have more oriented grain structure locked in the cast film by cold water.
The film is slitted by means of a multislitter for required tape width. The orientation of the tapes is
then done by stretching through hot air oven to adopt a chain structure. The tape is then annealed by
heating and cooling arrangement before winding to get adequately tight wound bobbin for use on
circular looms. The tape with different deniers and strength are produced on the same extruder by
suitable changes in the operating parameters of the extruder.
Weaving of tapes into fabric
The extruded tapes as available above on the bobbins and arranged on creel are fed to the circular
weaving machines for weaving the desired type of fabric. The circular weaving machines (looms) are
4 shuttle or 6 shuttle looms. The output of these looms is in the tubular form is continuously cut
through a cutter placed at the circular machine discharge and then single flat fabric is wound on the
roll form. Each roll containing approx 1000 metre fabric is formed which is then sent to the lamination
machine.
Lamination of LLDPE extrusion coating on fabric
The rolls obtained from circular weaving machine above are fed to the lamination plant which has an
extruder and laminator. The LLDPE granules along with coloured master batches are fed to the
extruder where the LLDPE film is extruded and is laminated on both sides of the fabric directly, thus
offering better and uniform laminations on fabric surface. Here exact thickness of lamination is to be
done to give the fabric a preset weight and achieve waterproofness. In order for tarpaulins to be 100%
waterproof, the lamination has to be defect-free i.e. without any pinholes.
Cutting, welding (heat sealing) and hemming
The coloured laminated rolls of HDPE woven fabric are welded together to make the desired width of
fabric by the use of automatic central welding machine working on heat sealing principle. While the
central welding of the rolls is in progress, the side welding is also carried out simultaneously with the
PP or PE rope inserted in sides to give tarpaulin of desired strength. The tarpaulin is then cut into
desired length and again the process of side welding along the cut side is carried out with PP/PE rope
insertions. The individual panels if required additionally are added one after another along with the
width to produce the desired dimensions of tarpaulin and covers.
Eyelet punching
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After welding, the eyelets are punched on all the four sides of the tarpaulin at a distance of 1 meter or
upto 1.5 meter as agreed to between the buyer and seller. Eyeletting will be done only in the case of
tarpaulins.
Marking and Printing
After the tarpaulin or cover is manufactured, it is printed at one corner on one side with the
manufacturers name, trade mark, if any, year of manufacture and the size. It can also be IS marked
040-23076461
Bailing and Packing
Tarpaulins and covers made above are folded as per clients instructions and individual tarpaulin is
then placed into the polyethylene bags. These individually packed tarpaulins are then bailed in suitable
packing size.
(ii)
Critical plant and equipment for the tarpaulin manufacture involve the following equipment:
Extrusion Tape Lines for Raffia Tape Manufacture
Circular Weaving Machines
Laminating Machines
Welding Machines
(iii)
The following table gives the name and address of suppliers along with the machinery type suitable for
the process and product.
Sl No
1
Name
Lohia Starlinger Ltd
J.P.Industries
22.5
Communication Address
D-3/A,
Panki
Industrial
Estate,
Kanpur - 208 022, INDIA
5403, Phase IV, G. I. D. C. Industrial Area,
Vatva, Ahmedabad 380 44, Gujarat
1701,
G.I.D.C.
Industrial
Estate
Ankleshwar
393
002,
Dist. Bharuch, Gujarat, India.
Brimco House, 55 Govt. Indl. Estate,Charkop,
Kandivli
(W),
Mumbai 400067 ,Maharashtra, India
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The total land area is 6000 sq metres and the built up area is 4000 sq mt.
22.7
Manpower Requirement
Total manpower required would be 212 nos of which management and administrative is 29 and
factory staff is 183.
Staff
Nos
Management Staff
General Manager
1
Production Manager
1
Finance Manager
1
Marketing Manager
1
Purchase manager
1
Personnel Manager
1
Account Staff
3
Marketing Staff
4
Personnel Staff
3
Security officer
3
Stores keeper
3
Computer operator
4
Peons
3
Sub Total
29
Factory
Supervisory
39
Skilled
60
Unskilled
84
Sub Total
183
Total
212
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22.8
Mott MacDonald
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Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 2016.69 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Total
Rs in Lakhs
12.00
320.00
1239.77
61.24
37.66
249.99
96.03
2016.69
The project cost may be financed with a debt equity ratio of 3:1 as under:
Means of Finance
Promoters contribution
Term Loan
Total
22.9
Rs in lakhs
504.17
1512.51
2016.69
Particulars
1
1
2
3
22.10
2
999.94
749.96
249.99
Years of Operation
3
4
1142.79
857.09
285.70
1285.64
964.23
321.41
1428.49
1071.37
357.12
5
1428.49
1071.37
357.12
Operating Expenses
The annual operating expenses estimated at Rs 2882.93 lakhs (70% capacity utilization) is given
below:
Sl No
Particulars
Rs in lakhs
1
Land Lease Rental
1.38
2
Raw materials
1969.78
3
Utilities
70.65
4
Wages & Salaries
199.58
5
Overheads
34.83
6
Selling expenses
101.06
7
Packing expenses
101.06
8
Interest on term loan
226.88
9
Interest on Bank Finance for Working Capital
112.49
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Depreciation
65.23
2882.93
Total
22.11
Profitability Estimates
Sl No
Particulars
Yr -1
Yr-2
Production/Sales
Installed Capacity in MT
3500
3500
Capacity Utilization
70%
80%
Estimated Production in MT
2450
2800
Gross Sales Revenue
4043
4620
Year
Yr -3
3500
90%
3150
Yr -4
3500
100%
3500
Yr-5
3500
100%
3500
5198
5775
5775
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
22.12
1970
71
35
200
101
101
0
1
2478
1564
2251
71
35
200
116
116
303
1
3091
1529
2533
71
35
200
130
130
303
1
3401
1796
2814
71
35
200
144
144
303
1
3712
2063
2814
71
35
200
144
144
303
1
3712
2063
227
112
339
65
1,160
388
771
227
129
355
65
1,108
371
737
182
145
326
65
1,405
471
934
136
161
297
65
1,701
570
1,131
91
161
251
65
1,747
585
1,162
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
4043
4620
5198
5775
5775
200
101
65
26
71
35
200
116
65
26
71
35
200
130
65
26
71
35
200
144
65
26
71
35
200
144
65
26
71
35
Financial Indicators
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227
725
227
303
1,042
182
303
1,011
136
303
980
91
303
934
1970
101
112.49
2183
1,859
39%
40%
2251
116
128.56
2495
2,125
49%
2533
130
144.63
2807
2,390
42%
2814
144
160.70
3119
2,656
37%
2814
144
160.70
3119
2,656
35%
The IRR for the project is 24.8% , average ROI is 82% and average DSCR is 3.09.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
4043
1159.57
771.11
226.88
0.00
65.23
0.00
0.00
72%
82%
4620
1108.22
736.97
226.88
0.00
65.23
302.50
0.00
69%
226.88
1063.22
4.69
3.09
529.38
1029.07
1.94
5198
1404.75
934.16
181.50
0.00
65.23
302.50
0.00
82%
5775
1701.29
1131.36
136.13
0.00
65.23
302.50
0.00
94%
5775
1746.66
1161.53
90.75
0.00
65.23
302.50
0.00
94%
484.00
1180.89
2.44
438.63
1332.71
3.04
393.25
1317.51
3.35
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23.1
Introduction
Mott MacDonald
NEDFi
The packaging format is influenced by a wide range of factors such as product composition, logistics,
legal & regulatory compulsions, end usage etc. Its primary purpose is to retain the quantity &
characteristics of the packaged product as well as enhance the shelf life (especially in case of edible
products).
Flexible packaging is an integral part of the packaging segment and includes packaging for FMCG
products, ready to eat foods, confectionery items, over- wraps for various applications etc. Flexible
packaging has several key use segments viz. retail and institutional food & non-food products, medical
& pharmaceutical packaging, industrial applications and consumer products which involve the usage
of different types of film.
BOPP films serve as a raw material for the flexible packaging industry and also find application in
industrial products (capacitors & adhesive tapes). They are also cost-effective and available in sizes of
nine microns and above. BOPP films are moisture-resistant and increase the life of products by almost
23 times.
These films can be further segregated into the following categories:
These films are in the lowest band of the BOPP film spectrum and are classified as a commodity
product. They account for over 70% of the total BOPP film consumed globally. On account of the
commodity nature of this film, this segment is characterised by low margins and is extremely price
sensitive.
Films in this segment are customised and come in the following forms viz. opaque, pearlised,
capacitor grade, adhesive label grade, high barrier metallised etc. These are films which are either
treated (with chemicals, adhesives, processes viz. carona treatment, for better printability) or laminated
so as to meet the specific requirements of the packaged product. Over the last 5 years, the off take of
these films has witnessed the highest growth rate of 10.8%p.a. and the trend is expected to gather
momentum going forward, on account of cost effectiveness and other properties viz. barrier to oxygen,
moisture, UV light barrier properties & suitability for attractive presentation of snacks and
confectionery.
Films such as Thermal Laminated, special shrink, in mould labels, thin & rough capacitor grades fall
under this segment. These films necessitate high degree of customization in comparison to
Intermediaries and are largely consumed in mature markets like USA, Western Europe and Japan. In
this segment, the demand for Thermal laminated films is estimated at approx Rs18Billion (with USA
accounting for about Rs8bn). The growth in demand for this film over the past few years has been
exponential and the same is expected to sustain, considering its application in stationery products as
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well as cost benefits (No adhesive & curing time required). Moreover, the environment friendly nature
of these films is contributing to their increasing usage in mature markets and consequently leading to
higher off take from these geographies.
These films are available in various thicknesses ranging from 10 to 50 microns, which are used for
various applications described later. BOPP film is classified in the clear film category along with
cellophane, polyester film, PPTQ Films and UPPVC films, which have many applications in common
and hence, are competing within.
23.2
Market Potential
The market leaders in India in the BOPP film segment are Cosmo Films Pvt Ltd, Jindal Polyfilms Ltd.,
Uflex, Max India , Xpro India etc.
The factors which would lead to the demand growth of BOPP Films are:
Growth in packaging industry
Additional growth based on replacement trends (i.e. Switching over to BOPP) being observed
in end-use segments
New emerging application areas like labels, etc.
23.3
Plant Capacity
For manufacturing BOPP films, we have considered the plant having an installed capacity of 30,000
MT per annum. This capacity has been considered because this is the least capacity at which the plant
will be viable. The plant is expected to run on a continuous basis (i.e. 24 hours) for a total 300 days
per annum.
23.4
(i)
Manufacturing Process
BOPP film can be manufactured using any of the following 2 techniques viz. Tubular Bubble process
or Cast Stenter process.
The first technique is more suited for small scale operators and not widely used due to the lower
compressive and tensile strength of the film produced. The second method is more widely used and
preferred by most large scale BOPP manufacturers across the globe.
The process consists of the following steps:
Dosing & mixing: For each of the core layers depending on the film construction (3 layer or 5
layer), granulated PP resin is dosed and mixed with additives and the scrap film from the edge of the
finished BOPP film is trimmed, in order to give the film desired characteristics & achieve minimum
wastage.
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Extrusion: The mixed material for each of the layers is melted and plasticised to achieve the required
homogenous state and is then filtered and transported to the die unit.
Die Casting: The melted mixed material of each of the layers is cast to produce a flat layered cast
sheet, which is then cooled.
Machine Direction Orientation (vertical stretching): The cast sheet is then heated up by preheating
the rolls & is vertically stretched before annealing (heat setting to stabilise the stretched sheet).
Transversal Direction Orientation (horizontal stretching): The cast sheet is horizontally stretched and
then annealed again to determine the width and other properties of the film.
Pull Roll Station: The film is trimmed, measured for thickness and surface treated by the carona
treatment unit (which makes it receptive to printing)
Winding & Slitting: The film is then wound onto metal rolls, allowed to cool and unwound from the
metal rolls, slit to the requisite width and wound again for despatch.
(ii)
The list of major plant and machinery for the BOPP Project is given below:
(iii)
The following is the list of plant and machinery suppliers of the above equipments.
1
Bruckner AG India, 03, Business Avenue, Sanghvi Nagar, Parihar Chowk, Aundh, Pune411007
Middle East India Office, Mumbai 400104
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23.5
Mott MacDonald
NEDFi
The key raw materials used for BOPP film manufacture are:
Polypropylene (Homo-polymer / Copolymer)
Additives and Fillers (Calcium Carbonate, Mica, Chalk, etc)
The raw material required would be around 30000 MT at 100% capacity utilisation. The unit has been
assumed to operate at 80% and 90% of its installed capacity in the first & second year and at 100%
capacity from the third year and onwards of its operation.
The utilities required are power and water. Around 7500 KW of Power and 3000 KLPA of water are
required.
23.6
The land required would be approx 7000 sq.m with a built-up area of approx 5000 sq. m.
23.7
Manpower Requirement
Total manpower required would be as detailed out below. A margin of 25% has been considered for
other benefits for the staff.
Staff
General Manager
Works Manager
Accountant-cum-Store Keeper
Assistant Accountant
Administrative Manager
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
23.8
Nos
1
3
4
2
1
1
5
10
8
20
10
64
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
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as part of operating cost. The total project cost is estimated at Rs 13704.83 Lakhs (Rs.137.04 Crores)
as follows.
Sl No
1
2
3
4
5
6
7
Particulars
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Total
Rs in Lakhs
14.00
400.00
10450.14
39.85
255.93
1892.30
652.61
13704.83
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Rs in lakhs
Equity
Debt
Total
23.9
3426.21
10278.62
13704.83
Working Capital Requirement
Year 1
7569.21
5676.90
1892.30
Year 2
8515.36
6386.52
2128.84
Year 3
9461.51
7096.13
2365.38
Year 4
Year 5
9461.51
7096.13
2365.38
9461.51
7096.13
2365.38
Operating Expenses
The annual operating expenses estimated at Rs 21463.60 lakhs (80% capacity utilization) is given
below:
Sl No
1
2
3
4
5
6
7
8
Particulars
Annual Land Charges
Raw materials
Utilities
Wages & Salaries
Overheads
Selling expenses
Packing expenses
Interest on term loan
Rs in lakhs
1.61
16554.20
373.20
28.28
128.50
750.01
750.01
1593.19
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10
Total
23.11
Mott MacDonald
NEDFi
851.54
434.69
21463.60
Profitability Estimates
(Rs. in Lakhs)
Sl No
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
23.12
Yr -1
Yr-2
Year
Yr -3
30000
80%
24000
30000
90%
27000
30000
100%
30000
30000
100%
30000
30000
100%
30000
30000
33750
37500
37500
37500
16554
373
128
28
750
750
0
1.61
18213
11788
18623
373
128
28
844
844
2570
1.61
23412
10338
20693
373
128
28
938
938
2570
1.61
25669
11831
20693
373
128
28
938
938
2570
1.61
25669
11831
20693
373
128
28
938
938
2570
1.61
25669
11831
1593
852
2445
435
8908
2984
5924
1593
958
2551
435
7352
2463
4889
1195
1064
2259
435
9137
3061
6076
797
1064
1861
435
9536
3194
6341
398
1064
1463
435
9934
3328
6606
Yr -4
Yr-5
Financial Indicators
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
30000
33750
37500
37500
37500
28
750
435
28
844
435
28
938
435
28
938
435
28
938
435
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167
373
128
1,593
3,475
167
373
128
1,593
2,570
6,138
167
373
128
1,195
2,570
5,834
167
373
128
797
2,570
5,436
167
373
128
398
2,570
5,037
16554
750
851.54
18156
11844
29%
37%
18623
844
957.98
20425
13325
46%
20693
938
1064.42
22695
14806
39%
20693
938
1064.42
22695
14806
37%
20693
938
1064.42
22695
14806
34%
The IRR for the project is 18.6%, Average ROI is 77% and average DSCR is 2.69.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
30000
8908.23
5923.97
1593.19
0.00
434.69
0.00
0.00
80%
77%
33750
7352.18
4889.20
1593.19
0.00
434.69
2569.66
0.00
68%
1593.19
7951.85
4.99
2.69
4162.84
6917.08
1.66
37500
9137.29
6076.30
1194.89
0.00
434.69
2569.66
0.00
79%
37500
9535.59
6341.16
796.59
0.00
434.69
2569.66
0.00
79%
37500
9933.88
6606.03
398.30
0.00
434.69
2569.66
0.00
79%
3764.55
7705.88
2.05
3366.25
7572.45
2.25
2967.95
7439.02
2.51
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24
Leno Bags
24.1
Introduction
Mott MacDonald
NEDFi
Leno bags can be used in bulk packaging of various produce like onion, garlic, potato, peas, citrus
fruits and many other horticultural and agricultural produce. Leno bags are being increasingly used the
world over. In India too, the trend of using Leno bags has started and its use has picked up in UP,
Gujarat, Maharashtra, Karnataka and Tamil Nadu.
24.2
Market Potential
The advantages of using leno bags in place of the conventional jute bags are:
Facilitates excellent aeration of the packed produce which helps storage in the open as well as in cold
storages.
Facilitates easy visual inspection of contents packed.
Resistant to fungal and insect damage.
Resistant to moisture and chemicals.
Does not impart any odour to the packed produce, and is a food grade material.
Reusable and washable, easy to handle and store.
Light in weight, as compared to jute and hence cost effective.
24.3
Plant Capacity
The typical size of the project for manufacture of PP leno bags could have an installed capacity of 144
MT per annum. This would mean that approx 2571 bales of PP leno mesh could be manufactured at
100% capacity utilisation.
24.4
(i)
Manufacturing Process
The raw material, Poly Propylene granules / pellets is fed into an extruder and the resultant tape is
winded by plastic tape winding machine. These adjacent warp tapes are twisted around consecutive
weft tapes to form a spiral pair, effectively locking each weft in place by the leno circular loom. This
mesh is sewed by sewing machine and baled.
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Extruder
Plastic Tape winding machine
PP Leno Circular Loom
Sewing machine complete set with all fittings
Scissor, Scale, Tape and accessories
(iii)
The following is the list of plant and machinery suppliers of the above equipments.
Sl No
1
Name
Exzakta Meccanica
24.5
Communication Address
1706/2, GIDC Estate,Ankleshwar 393 002,
Gujarat, INDIA
52, Bindal Industrial Estate, Sakinaka, Andheri
(East), Mumbai 72, India
The major raw material required for the project would be polypropylene. In addition, master batches
are added to add colour. The raw material including PP and master batches would be around 144 MT
at 100% capacity utilisation.
The unit has been assumed to operate at 80% and 90% of its installed capacity in the first & second
year and at 100% capacity from the third year and onwards of its operation.
The utilities required are power and water. Around 50 KW of Power and 600 KLPA of water are
required.
24.6
The total land area is 1500 sq metres and the built up area is 1000 sq mt.
24.7
Manpower Requirement
Total manpower required would be 27 Nos of which administrative is 4 and factory staff is 23.
Additional benefits at the rate of 25% have been considered.
Personnel
Nos
1
1
1
1
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
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Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
12
6
4
1
27
Total
24.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost is estimated at Rs 204.46 lakhs as follows.
Sl No
1
2
3
4
5
6
7
Total
Project Cost
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Margin Money on Working Capital
Contingencies
Rs in Lakhs
3.00
80.00
83.44
7.57
3.82
16.90
9.74
204.46
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Equity
Debt
Total
24.9
Rs in lakhs
51.12
153.35
204.46
Particulars
1
1
2
3
24.10
67.61
50.71
16.90
Years of Operation
2
3
4
76.06
57.04
19.01
84.51
63.38
21.13
84.51
63.38
21.13
5
84.51
63.38
21.13
Operating Expenses
The Annual Operating Expenses estimated at Rs 159.38 lakhs (80% capacity utilization) is given
below.
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.35
2
Raw materials
85.90
3
Utilities
2.90
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5
6
7
8
9
10
24.11
Sl No
13.02
5.36
7.26
7.26
23.00
7.61
6.71
159.38
Profitability Estimates
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Estimated Production
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
24.12
Mott MacDonald
NEDFi
Yr -1
Yr-2
Year
Yr -3
144
80%
115
144
90%
130
144
100%
144
144
100%
144
144
100%
144
291
327
363
363
363
86
3
5
16
7
7
0
0
125
165
97
3
5
16
8
8
38
0
176
151
107
3
5
16
9
9
38
0
189
175
107
3
5
16
9
9
38
0
189
175
107
3
5
16
9
9
38
0
189
175
23
8
31
7
128
43
85
23
8
31
7
113
38
75
17
9
27
7
141
47
94
12
9
21
7
147
49
98
6
9
15
7
153
51
102
Yr -4
Yr-5
Financial Indicators
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
291
327
363
363
363
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Salaries
Fixed Selling Expenses
Depreciation (SLM)
Repairs & Maintenance
Utilities (Fixed)
Admin. Overheads Incl Insurance
Loan Repayment
Interest On L.T. Loan
Total Fixed Costs
Variable Cost
Raw Materials
Packing
Interest On Working Capital Loans
Total Variable Costs
Contribution
Breakeven In %
Average Breakeven In %
Mott MacDonald
NEDFi
16
7
7
3
3
5
23
65
16
8
7
3
3
5
38
23
104
16
9
7
3
3
5
38
17
99
16
9
7
3
3
5
38
12
93
16
9
7
3
3
5
38
6
87
86
7
7.54
101
190
34%
40%
97
8
8.48
113
214
49%
107
9
9.43
126
237
42%
107
9
9.43
126
237
39%
107
9
9.43
126
237
37%
The IRR for the project is 19.6%, Average ROI is 78% and average DSCR is 2.75.
Particulars
Year of Operation
2
3
4
1
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
291
128.07
85.16
23.00
0.00
6.71
0.00
0.00
77%
78%
327
112.56
74.85
23.00
0.00
6.71
38.34
0.00
70%
363
141.15
93.86
17.25
0.00
6.71
38.34
0.00
81%
363
146.90
97.69
11.50
0.00
6.71
38.34
0.00
81%
363
152.65
101.51
5.75
0.00
6.71
38.34
0.00
81%
23.00
114.88
4.99
2.75
61.34
104.57
1.70
55.59
117.82
2.12
49.84
115.90
2.33
44.09
113.97
2.59
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25
Ropes
25.1
Introduction
Mott MacDonald
NEDFi
Poly Propylene is the easiest material to fibrillate and thus has been used in most of the commercial
products. The major advantages of PP fibrillated ropes are
They are resistant to the corrosive effects of salt water and mildew.
They have high abrasion resistance and are comparatively inert to chemicals.
They have long shelf life without deterioration in strength and do not twist or rotate and hence
remain tangle free.
25.2
Market Potential
PP Fibrillated ropes are used in ports and ship building yards in towing, mooring, dry docking and
other applications. It is used in Electricity Boards for the purpose of tower erection, transformer
hoisting and for material handling.
In defence, PP fibrillated ropes are used for several applications in the armed forces such as towing of
gunny surface targets, rope drags for recovery of vehicles, arrester barriers,pantoon
bridges,tentage,repelling etc. In the transportation industry, PP ropes are used for fastening loads on
trucks and wagons, towing vehicles etc. In steel pipe industry, PP ropes are used in picking and
anodising operation.
PP ropes finds applications in sugar factories, engineering, construction and oil exploration industries
for material handling. Since ropes made by the fibrillating technique are easy to grip and are stronger
than conventional ropes, they find ready acceptance as substitutes for ropes made from natural
material.
25.3
Plant Capacity
The typical size of the project for manufacture of PP Ropes could have an installed capacity of 294
MT per annum.
25.4
(i)
Manufacturing Process
The manufacturing process for fibrillated ropes and twines is a two stage process. At first stage
fibrillated tapes are manufactured and in the second stage the ropes and twines are made.
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PP granules of the suitable grade and additives like UV-stabiliser, etc. are fed into the dosing, mixing
and feeding hopper and blended thoroughly. The charge thus prepared is fed into the extruder where it
is melted, filtered and then pressed through the flat die. The extruded film is then cooled by a chill roll
system. To decrease the concentration of thermo plastic primary film from the die to the chill roll and
to avoid trapped air between film and chill roll air is blown by a fan on to the film through an air knife.
Then cooled primary film is fed over chill roll via the transfer unit into the holding and cutting device,
the film is cut into tapes. Subsequently, the tapes are brought to the required stretching temperature on
a heating plate and are stretched by means of pulling and stabilizing unit. Then the tapes are wound on
bobbins.
The unstretched and stretched edge trims are aspirated after the holding, cutting and stretching, cut
into chip by the edge trim recovery system and conveyed automatically back into the mixing and
metering unit, resulting in nil wastage. The films thus extruded are subjected to a fibrillator unit. Here
the fibrillation is affected by pins and cutters making a series of slots in sheet of film. Then these tapes
are wound on winders for further use.
The degree of fibrillation depends on the frequency of the slots along the film, the length of slots and
the pitch of the slots across the films. The aspirator unit removes the dust and fibres from the
fibrillator and collects broken tapes from the fibrillator.
The packages of fibrillated tapes are kept on the creel and fed to the 2-for-1 twister. The twisted yarn
is then led to the cross laying take up unit where the yarn is laid in criss-cross fashion and wound. The
packages thus cross wound are fed to rope making unit via the stranding section where it is twisted and
fed to the coil winding machine.
(ii)
Major plant and machineries required for the PP Ropes project are:
Horizontal extruder 90 mm dia L/D ratio = 26:1
Extrusion head with flat die 1000 mm
Stretching unit
Fibrillation unit
Stabilising and holding unit
Edge trim recover system
Winding system
Two for one twister
Take up unit
Control cabinets
Stranding unit
Rope making unit
Mixing and dosing unit
Chilling plant and cooling tower
Air compressor
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The major raw material required is box strapping grade poly propylene. Certain additives and
plasticisers have to be added to manufacture ropes and twines.
The raw material required would be around 294 MT at 100% capacity utilisation. The unit has been
assumed to operate at 80% and 90% of its installed capacity in the first and second year and at 100%
capacity from the third year and onwards of its operation.
The utilities required are power and water. Around 110 KW of Power and 450 KLPA of water are
required.
25.6
The land area required would be approx 750 sq.m with a build up area of 500 sq.mtr.
25.7
Manpower Requirement
Total manpower required would be 16 Nos of which administrative is 4 and factory staff is 12.
Personnel
Nos
1
1
1
1
6
3
2
1
16
Works Manager
Accountant-cum-Store Keeper
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Unskilled Workers
Peon/Watchman
Total
25.8
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The total project cost of Rs 144.34 Lakhs is as follows.
Sl No
1
2
3
4
5
Project Cost
Site Development Cost
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary and Pre-Operative Expenses
Rs in Lakhs
1.50
30.00
75.00
8.12
2.70
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NEDFi
20.15
6.87
144.34
The project cost may be financed with a debt: equity ratio of 3: 1 as follows.
Means of Finance
Rs in lakhs
Equity
Debt
Total
25.9
36.08
108.25
144.34
Particulars
Years of Operation
2
3
4
1
1
2
3
25.10
80.58
60.44
20.15
90.66
67.99
22.66
100.73
75.55
25.18
100.73
75.55
25.18
5
100.73
75.55
25.18
Operating Expenses
The annual operating expenses estimated at Rs 236.27 lakhs (80% capacity utilization) is given below:
Sl No
Particulars
Rs in lakhs
1
Annual Land Charges
0.17
2
Raw materials
167.57
3
Utilities
6.22
4
Wages & Salaries
10.58
5
Administrative Overheads
4.80
6
Selling Expenses
8.06
7
Packing Expenses
8.06
8
Interest on term loan
16.24
9
Interest on Bank Finance for Working Capital
9.07
10
Depreciation
5.51
Total
236.27
25.11
Sl No
Profitability Estimates
Particulars
Production/Sales
Installed Capacity
Capacity Utilization
Yr -1
Yr-2
Year
Yr -3
288
80%
288
90%
288
100%
Yr -4
Yr-5
288
100%
288
100%
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Estimated Production
Gross Sales Revenue
Mott MacDonald
NEDFi
230
259
288
288
288
323
363
403
403
403
168
6
5
8
8
8
0
0.17
203
119
189
6
5
8
9
9
22
0.17
248
115
209
6
5
8
10
10
22
0.17
271
132
209
6
5
8
10
10
22
0.17
271
132
209
6
5
8
10
10
22
0.17
271
132
16
9
25
6
88
30
59
16
10
26
6
83
28
55
13
11
24
6
102
34
68
10
11
21
6
106
35
70
6
11
18
6
109
36
72
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
323
363
403
403
403
8
8
6
2
6
5
16
52
8
9
6
2
6
5
16
22
74
8
10
6
2
6
5
13
22
72
8
10
6
2
6
5
10
22
69
8
10
6
2
6
5
6
22
65
168
8
9.07
185
138
189
9
10.20
208
155
209
10
11.33
231
172
209
10
11.33
231
172
209
10
11.33
231
172
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
25.12
Financial Indicators
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Breakeven In %
Average Breakeven In %
37%
41%
48%
Mott MacDonald
NEDFi
42%
40%
38%
The IRR for the project is 25.2%, Average ROI is 80% and average DSCR is 3.04.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Interest on Deposits
Depreciation
LT Loan Repayment
Deposit Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
323
88
59
16
0
363
83
55
16
0
403
102
68
13
0
403
106
70
10
0
403
109
72
6
0
6
0
0
76%
80%
6
22
0
73%
6
22
0
84%
6
22
0
84%
6
22
0
84%
16
81
4.96
3.04
38
77
2.03
35
87
2.50
31
86
2.72
28
84
3.00
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26
26.1
Introduction
Mott MacDonald
NEDFi
Disposable cups are now fast replacing conventional cups. Ice-cream and other dairy products are
packed in disposable cups. Besides Ice-cream industry, hotels, restaurants, canteens etc. have been
increasingly using disposable cups as against conventional glass-wares or ceramic cups. Disposable
cups are mainly used for food items and are made out of polypropylene or polystyrene sheets. The
disposable cups are gaining popularity due to attractive look, low weight for container, ease of
transportation and low impermeability. Organizations like Railways, Airlines are using disposable
cups for serving coffee, tea etc. now-a-days.
26.2
Market Potential
With the changing lifestyles and attitudes, there has been an increased market for the thermoformed
products. The following are the major sectors in which these find application.
Food Industry
Food Industry is one of the largest users of Thermoformed packaging. Their main application is for
processed food and take away serving packaging.
Pharmaceutical/Medical Industry
Products like Ampoules, Diagnostic Kits etc., are packed in thermoformed packaging.
Electronics Industry
The miniature components can be individually form packed and protected against damage due to
handling.
Horticulture Industry
There are many applications to pack fruits and vegetables for bulk and consumer pack. The
thermoformed articles are used for green house as seed trays and flower pots etc.
Personal Care Products. & Cosmetics Industry
Changing vogues imply shorter life span of products. Costly tooling is needed for injection moulded
container/ packaging. Thermoforming packs are cheaper, faster to make and the process has higher
output rates making quick changes in design economically feasible.
Construction Industry
Sheets and rolls of appropriate material can be formed and used as an excellent barrier against water
seepage in tunnels etc. Many other products like bathroom accessories, domes, panelling, ceiling etc
can be made.
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Automobile Industry
Large sized thick walled thermoformed products like door liners, dash boards, front grills are widely
used in the automobile sector.
Thermoforming differs from injection molding, blow molding, rotational molding, and other forms of
processing plastics. Thin-gauge thermoforming is primarily the manufacture of disposable cups,
containers, lids, trays, blisters, clamshells, and other products for the food, medical, and general retail
industries. Thick-gauge thermoforming includes parts as diverse as vehicle door and dash panels,
refrigerator liners, utility vehicle beds, and plastic pallets.
The following are the advantages of thermoformed products in packing
Hygienic.
Protection to the product packed.
Precise and convenient placement of the product due to contoured forming.
Reduced cost of packing.
Light weight packing.
Easy visual inspection without opening the whole package.
Tamper proof packaging.
Microwavable moisture Resistant packaging.
Inert to many chemicals.
Can be formed as transparent, Printed, Opaque etc.
Development costs are comparatively lower and high volumes can be produced within a very short
time.
Some of the reasons for thermoformed PP packaging's immense popularity are
Easily recyclability.
Choice of Rigidity / flexibility in packing.
Storage at sub-zero temperatures.
Good moisture barrier properties.
These are suitable for micro-wave ovens.
Excellent contact clarity (Clarified PP).
Economical.
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26.3
Mott MacDonald
NEDFi
Plant Capacity
The proposed production is estimated to be of two types, tea/coffee cups of 65 -80 ml and water/juice
glasses of 180 ml. The following table details the production plan.
Sl No
1
2
Particulars
65-80 ml of tea /
coffee cups
180 ml of water /
juice glasses
Per Hour
Production
70,000
Estimated
Days of Prodn
150
Working
hours / day
8 hours
70,000
150
8 hours
Total Annual
Production
84000000
84000000
168,000,000
Total
The unit has been assumed to operate at 80%, 90% and 100% of its installed capacity in the first,
second and third year and onwards of its operation with 8 working hours/day i.e.1 shift and 300
working days in a year.
26.4
(i)
Manufacturing Process
The major equipment required by the unit for manufacturing plastic disposable cups are as follows:
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NEDFi
The following are the plant and machinery suppliers for the project.
Sl No
1
2
3
26.5
Name
M/s Klockner Windsor India Ltd.
Communication Address
E-6 UZ Road, Thane Industrial Estate,
Thane 400 604
M/s Wonderpack Industries P.Ltd.
72, Ist floor, Shivalaya Mansion,
Hamington Road, Mumbai- 400 008
M/s Isimat India Screen Printing 29, Apurva Industrial Estate,
Machinery Pvt. Ltd.
Makvana Road, Andheri Kurla Road,
Andheri (East),Mumbai 400 059
M/s Solex Machines
C, 1/510, GIDC, Gundlav,
Distt. Valsad, Gujarat-396 035
Raw Material & Utilities Requirement
The major raw material required for the project would be polypropylene which is as follows.
Raw Material Requirement
Milli litre
65-80 ml tea/coffee cups
80
180 -200 ml water / juice cups
200
Total Raw Material Reqd including 3% wastage
Wt in gms
1.032
2.58
Total in MT
74.30
108.36
188.14
The unit has been assumed to operate at 80% and 90% of its installed capacity in the first and second
year and at 100% capacity from third year and onwards of its operation.
The utilities required are power and water. Around 220 KW of Power and 450 KLPA of water are
required.
26.6
The total land area is 500 sq metres and the built up area is 300 sq mt.
26.7
Manpower Requirement
Total manpower required would be 13 Nos of which administrative is 4 and factory staff is 9.
Personnel
Nos
Works Manager
1
Accountant-cum-Store Keeper
1
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NEDFi
Administrative Assistant
Clerk
Skilled Workers
Semi Skilled Workers
Peon/Watchman
Total
26.8
1
1
5
3
1
13
Land has not been considered as a part of the project cost because it has been considered to be taken
on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the
Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered
as part of operating cost. The project cost of Rs 199.87 lakhs is as follows.
Sl No
1
2
3
4
5
6
7
Particulars
Rs in Lakhs
1.00
24.00
135.21
9.15
2.00
19.00
9.52
199.87
This project cost may be financed at a debt equity ratio of 3:1 as follows.
Means of Finance
Equity
Debt
Total
26.9
Rs in lakhs
49.97
149.90
199.87
Particulars
1
1
2
3
26.10
76.00
57.00
19.00
Years of Operation
2
3
4
85.50
64.12
21.37
95.00
71.25
23.75
95.00
71.25
23.75
5
95.00
71.25
23.75
Operating Expenses
The annual operating expenses estimated at Rs 177.02 lakhs (80% capacity utilization) is given below:
Sl No
Particulars
Rs in Lakhs
1
Annual Land Charges
0.12
2
Raw materials
107.73
3
Utilities
11.13
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4
5
6
7
8
9
10
Total
26.11
9.00
3.53
0.67
8.06
22.49
8.55
5.74
177.02
Profitability Estimates
Sl No
Particulars
Production/Sales
Installed Capacity(in lakh nos)
Capacity Utilization
Estimated Production (in lakh
nos)
Gross Sales Revenue
Expenses
Raw Material Consumption
Utilities
Administrative Overheads
Salaries
Sales Expenses
Packing Expenses
Loan Repayment
Lease Rentals
Total
Gross Profit
Financial Expenses
Interest On Term Loan
Interest On Working Capital
Sub Total
Depreciation
Profit Before Tax
Provision For Tax
Profit After Tax
26.12
Mott MacDonald
NEDFi
Yr -1
Yr-2
Year
Yr -3
1680
80%
1344
1680
90%
1512
1680
100%
1680
1680
100%
1680
1680
100%
1680
323
363
403
403
403
108
11
4
7
8
8
0
0.12
146
177
121
11
4
7
9
9
37
0.12
199
164
135
11
4
7
10
10
37
0.12
214
189
135
11
4
7
10
10
37
0.12
214
189
135
11
4
7
10
10
37
0.12
214
189
22
9
31
5.7
140
46
94
22
10
32
5.7
126
42
85
17
11
28
5.7
156
51
104
11
11
22
5.7
161
53
108
6
11
16
5.7
167
55
112
Yr -1
Yr-2
Yr -3
Yr -4
Yr-5
323
363
403
403
403
Yr -4
Yr-5
Financial Indicators
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Fixed Costs
Salaries
Fixed Selling Expenses
Depreciation (SLM)
Repairs & Maintenance
Utilities (Fixed)
Admin. Overheads Incl Insurance
Interest On L.T. Loan
Loan Repayment
Total Fixed Costs
Variable Cost
Raw Materials
Packing
Interest On Working Capital Loans
Total Variable Costs
Contribution
Breakeven In %
Average Breakeven In %
Mott MacDonald
NEDFi
7
8
6
2
11
4
22
60
7
9
6
2
11
4
22
37
99
7
10
6
2
11
4
17
37
94
7
10
6
2
11
4
11
37
89
7
10
6
2
11
4
6
37
83
108
8
9
124
198
30%
36%
121
9
10
140
223
44%
135
10
11
155
248
38%
135
10
11
155
248
36%
135
10
11
155
248
34%
The IRR for the project is 27.4%, Average ROI is 86% and average DSCR is 3.01.
Particulars
Revenue
Profit Before Tax
Profit After Tax
LT Interest
Depreciation
LT Loan Repayment
Return on Investment (%)
Average ROI
Debt-Service Coverage Ratio
- Debt Service
- Coverage
DSCR
Average DSCR
Year of Operation
3
4
323
139.95
93.77
22.49
5.74
0.00
84%
86%
363
126.24
84.58
22.49
5.74
37.48
77%
403
155.64
104.28
16.86
5.74
37.48
89%
403
161.26
108.04
11.24
5.74
37.48
89%
403
166.88
111.81
5.62
5.74
37.48
89%
22.49
121.99
5.43
3.01
59.96
112.81
1.88
54.34
126.88
2.33
48.72
125.03
2.57
43.10
123.17
2.86
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