HDPE BOTTLES AND CONTAINERS

KSIDC

PROJECT PROFILE
ON
HDPE BOTTLES AND CONTAINERS

Prepared by:

Kerala State Industrial Development Corporation

September 2012

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HDPE BOTTLES AND CONTAINERS

KSIDC

HDPE BOTTLES AND CONTAINERS

PROJECT SUMMARY
1.

Project

To set up an unit for the manufacture of HDPE

bottles/ containers

2.

Proposed Location

KSIDCs Industrial Growth Centre, Valiya Velicham,

Kuthuparamba, Kannur District

3.

Proposed Capacity

1344000 pieces
2 Litre Bottles/Container
5 Litre Can
10 Litre Can

960000 pieces
345600 pieces
36TPA

Caps
4.

Project Cost

Rs.450 lakhs

5.

Sales Turnover (2 shift)

Rs.700 lakhs (optimum capacity utilization)

6.

Major Raw Materials

HDPE resin granules 580 MT/annum

7.

Land Requirement

200 cents

8.

Man Power

40 Nos.

9.

PBT (at optimum capacity)

Rs.80 lakhs

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HDPE BOTTLES AND CONTAINERS

KSIDC

HDPE BOTTLES AND CONTAINERS

I. INTRODUCTION
HIGH-DENSITY POLYETHYLENE (HDPE) resin is produced from the chemical compound VIZ.,
ethylene. 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. The
light weight, flexibility, corrosion and chemical resistance have made these plastic products
versatile for storage and handling of water, petroleum products etc. HDPE Bottles are used
for detergents, shampoos, motor oil, milk, 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. 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 etc.

II. PROJECT/PROCESS
The project envisages setting up a unit for the manufacture of HDPE bottles/ containers.
HDPE Bottles and containers are manufactured in an automatic extrusion blow moulding
machine. HDPE granules are fed in to an automatic extrusion blow moulding machine and is
subjected to heat and pressure in an extruder. The semi-molten plastic in extruder is passed
through the nozzle and air is blown into the mould to force the molten plastic against the
sides of the mould. The final product is then cooled before removal from the mould.
The suggested product mix is given below.
Product mix
2 Ltr Bottles
5 Ltr Can
10 Ltr Can

Production Quantity
1344000 pieces
960000 pieces
345600 pieces
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HDPE BOTTLES AND CONTAINERS

KSIDC

36TPA

Caps

The production basis for a typical unit would be as under:

III.

Working hours/day: 16 (2 shifts)

Working days in a year: 300

MARKET POTENTIAL

Since the early seventies, high-density polyethylene (HDPE) has been the polymer of choice
for the production of bottles. 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
maturity level, growth could be realized in virtually every segment of application.
At present, cartons, pouches and bottles made of HDPE, polypropylene, PET and
polycarbonate 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,

Thus, industry has recognized HDPE as the plastic container of choice to ensure purity of its
contents. Plastic milk containers 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.

IV.

RAW MATERIAL & UTILITIES REQUIREMENT

The main raw materials required are HDPE granules. The annual requirement at 100%
capacity utilization for HDPE is estimated at 580 tonnes per annum (considering wastage of
5% ).

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HDPE BOTTLES AND CONTAINERS

KSIDC

The utilities required are power and water. Around 200 KW of Power and 20KL of water are
required per day.

V.

LOCATION, LAND & BUILT-UP AREA REQUIREMENT

The location suggested is at KSIDCS Industrial Growth Centre (IGC) at Valiya Velicham,
Kuthuparamba, Kannur District. The IGC, Kannur is spread over 250 acres of land, which
has all the basic infrastructure facilities and excellent road connectivity. The total land
required is about 2 acres and the built-up area requirement is estimated at 1200 sq.m.
VI.

MANPOWER REQUIREMENT

The total manpower requirement is 40 nos out of which administrative is 10 and factory
staff is 30.
VII.

PROJECT COST & MEANS OF FINANCE

The Total Project Cost is Rs. 450 Lakhs as per the table below:

1
2
3
4
5
6
7
8
9

Description
Land ( Long term lease 90 years) 2 acres
Land Development
Building and Civil Works
Plant and Machinery
Electrification
Misc fixed assets
Prelim - Preoperative Expenses
Contingencies
Working capital margin

Rs. Lakhs
46.00
10.00
50.00
181.00
30.00
15.00
30.00
18.00
70.00
450.00

This project cost may be financed at a Debt-Equity ratio of 1.5:1 as follows:

Means of Finance
Equity
Term Loan
Total

VIII.

Rs. in Lakhs
180.00
270.00
450.00

PLANT & MACHINERY

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HDPE BOTTLES AND CONTAINERS

KSIDC

The equipment has been selected keeping in view the capacity and other process
considerations. The major equipment required by the unit for HDPE bottles are as follows
Description
1. Blow Moulding Machine
2. Blow Moulding Machine
3. Blow Moulding Machine
4. Injection Moulding Machine
5. Blow Moulds
6. Blow Moulds ( 2 nos)
7. Blow Moulds ( 2 nos)
8. Injection Mould caps
9. Injection Mould Inner
10. Injection Mould Ring
11. Printing Machine
12. Grinding Machine
13. Materials Hopper Loader
14. Materials Mixer
15. Conveyor Belts
16. Delivery Vehicle (Ace)
17. Forklift
18. Trolley
19. Tool Room
20. Water Chiller
21. Air Compressor

Qty
10 Litre
5 litre
2 litre
10 Litre
5 litre
2 litre
10 Litre Caps
5 Litre Caps
2 Litre Caps
1
4
4
4
4
1
1
1
1
1
1

Rs. Lakhs
33.75
24.75
18.00
18.00
5.40
6.75
4.50
4.50
3.60
2.02
13.50
9.00
0.90
2.70
1.58
1.55
9.00
1.50
3.00
2.00
15.00
181.00

The following table gives the names and addresses of plant and machinery suppliers in india.
The above machinerys can be also sourced from China, Taiwan Germany etc.
Sl. No.
1
2
3
4
5
IX.

Name
Suresh Engineering Works Indore- (M.P.)
R. H. Windsor (India) Ltd, Thane
British Plastic & Engineering Works New Delhi
Oswal Engineering Corpn. Mumbai
Kwality Engineering Works Kolkata
REVENUE

Size of Product

Price
Per Kg

2 Ltr Bottles
5 Ltr Can

130
120

Quantity/ Total Sales

KG
Rs.
161280
216000

20966400
25920000
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HDPE BOTTLES AND CONTAINERS

10 Ltr Can
Caps

X.

120
160

KSIDC
138240
36000

16588800
5760000
69235200

FINANCIAL INDICATORS

The Average Break Even Point for the project is 45%.

The IRR for the project is 20%,
Average DSCR is 3.14.
Payback period is 4 years

XI.

CONCLUSION AND RECOMMENDATION

HDPE containers and bottles play a significant role in the packaging industry. Their light
weight, flexibility, corrosion & chemical resistance have made these plastic products more
popular for storage of almost all kinds of liquid products. The project is prima facie
technically feasible and financially viable and found to be suitable for further development.

For further details please contact Kerala State Industrial Development Corporation Ltd.

Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through primary and
secondary research, which is indicative in nature. Reference herein to any specific commercial product, process,
service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement,
recommendation, or favoring by KSIDC or any entities thereof.

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