.

Manufacturing
Rigid PVC and Hose Pipes
Pipe Fittings and Solvent Cement

Project Report

[MANUFACTURING RIGID PVC PIPES]

Project Report
Project Outlay 5, 00, 00,000 INR

Production Capacity 51000 Tons per Annum

Product Ranges 20 mm to 400 mm Diameter Rigid PVC Pipes

Demand and Supply Around 35%, 100000 Tons per Annum

Manufacturing Rigid PVC Pipes
Orissa Project

......................4 2............9 .................................0 Demand and Supply Gap:......0 Application of PVC Pipes:.........................................0 Production Capacity:...............................................0 Employment Generation..0 Project Background.......8 7.............. 11 8...........................................................................19 16....0 Utilities to Manufacture............................................16 11...................................0 Proposed Project Site......................... Building and Other Civil Works.............................. 21 ...................16 13.........................................[MANUFACTURING RIGID PVC PIPES] Project Report Contents 1............0 Conclusion: .................................17 14....................................................................................................................2 Demand................................... 16 10...6 ........................0 Estimated Cost of the Project on PVC Pipes.........................0 Plant and Machinery:.............................................................................0 Market Status...........................................................................................................20 17............................................................0 Raw Materials....................................................15 9.....................................................16 12.................0 Land...................................................................4...............................................................................19 15......1 Supply........................................................................................................................................................................................................0 Means of Finance:.....................................................8 6......6 3.......................................0 Profitability..................6 5...................................................................................................................................................................................0 Sources of Raw materials...................0 Machinery Sources............................................. 7 Ori ssa Pro jec t 5..........7 5...............................

the average growth in PVC consumption over the past five years has been around 10% and expected to grow at a higher rate in the coming years. PVC pipes. Analysts cost. The PVC pipes to be manufactured can cater to the growing demand of macro-irrigation sector. opportunity in the country to be Seamless: make them health friendly avoid contamination around Rs 61. Economical: Almost Zero maintenance as free from duct.500 crore in the next of the fluid running in it. The global PVC pipe demand is expected to grow by 4% per annum. Light Weight: make them easy to store. the Odorless: Ensures hygienic conditions for potable water. . As per the estimation. Further on-going accelerated irrigation benefit program and major thrust given to infrastructure development in India. decade and more than 85% pipe Durability: they last longer requirement will be from PVC sector Resistance: to chemical reactions. transport estimate that that the micro irrigation and install. Ideal Substitute: Substitute to Cl. global demand for PVC is growing at four per cent per annum. GI & MS Pipes at almost 40% cost. rain Salient Features of PVC Pipes water harvesting and irrigation Higher Flow: compare to GI. which are major growth sectors apart from other conventional infrastructural requirements. This will translate into a demand growth of about 15% per annum. corrosions. while the Indian industry is expected to grow at 10 per cent in coming years. sprinkler irrigation. it is expected to have diversified product range within the same product line which the present proposal intends to do. lift-irrigation etc. looking at this prospect.[MANUFACTURING RIGID PVC PIPES] Project Report 1. PVC and pipes demand is robust on back of growth in housing. are used extensively. requirement of PVC pipes is expected to grow at about 20% over the next few years. India is the eighth major consumer of plastics in the world and the plastic industry demand is expected to grow by around 10-12% per annum for the next few years. handle. The continued focus of government on irrigation and construction activity would drive the growth going forward for PVC pipes. analysts expect PVC pipes companies to grow at 25 per cent in top line and about 15 per cent in bottom line. Considering the recent Government policy initiatives and increasing private demand. AC & CI Pipes due to projects along with domestic smoother internal surface. electrolytic. instead of conventional building material in various construction applications. scale formations & unharmed by moisture. only. So. Even on a conservative estimate. demand and demand from other Energy Saving: Low friction loss ensures lower pumping small scale industries.0 Project Background The main application of PVC in India is basically in shape of pipes. Looking at the rise in PVC consumption. because of its anti corrosion features and durability. As per the latest estimation. and the construction boom has given a fillip to PVC building material demand in the recent past.

The thrust of government in 11th plan period for irrigation coverage under. In a during the first four years of the 10th Plan. the demand for PVC in housing is yet at a very negligible level but demand is increasing with low cost housing norms. However. PVC is already in short supply in India. construction sector is 30% and government programmes is 20%.10% over the next 3 years. The proposal is to set up a rigid PVC pipe manufacturing unit in the state of Orissa after due analysis of the demand and supply situation and expected contribution of this unit to meet the demand supply gap. the domestic demand for 2001-2002 was around 825. On the domestic market front.[MANUFACTURING RIGID PVC PIPES] Project Report proposed project is going to meet a substantial part of the domestic PVC pipe requirement of Orissa and eastern region of the country. impetus for additional growth to agriculture from A component like PVC is an input to irrigation. additional growth irrigation is likely to provide contemplated would only be possible through accelerated irrigation. In other words demand will continue to be in excess of supply in the Indian market. Orissa is aiming at a growth The broad objective of the 11th Plan is to achieve a sustainable annual average growth rate of 9%. pipes are widely used in irrigation and water supply systems. the national growth rate. PVC its current level. The 4. As new applications are being accepted for plumbing. Moreover. Agriculture plays an important role in the demand where PVC pipes are primarily used in irrigation and rural water supply. th As per 11 Plan numbers. higher than plan size of Rs 27. Both these activities get the maximum attention and fund allocation from Central as well as State Government. Against a capacity of 788. . Every year the State Government is spending lakh of rupees on providing these basic facilities to the people and this is likely to continue over the next few decades. As a result the demand for PVC pipes and fittings is bound to keep growing. sanitation and rainwater. rural water supply and sanitation etc. is critical booster for increasing demand for PVC pipes.000 MT. double rate of 9 percent of which agriculture production from the present level. the demand for PVC pipes in housing is likely to see a quantum jump.000 MT and this is expected to grow by 8% .7 percent is likely to come agriculture sector had exhibited a growth rate of 3% from agriculture sector.000 crore. Consumption of PVC pipes by oil and gas sector is 50%.

5.0 Production Capacity: . 3. the connecting national highway should be there so there is less time to transport. The cheaper grey/black pipes with low wall thickness are used for cable ducting and low pressure applications whereas thick walled pipes with threaded ends are used for pressure applications. Their varied uses of PVC pipes are basically in the following areas. c. the manufacturing unit can provide a scope to the skilled and trained person powers. 1.[MANUFACTURING RIGID PVC PIPES] Project Report 2. Because of the recent growth in technical education. whithin 25 KMs. Better infrastructure – The unit should avail the benefit the other infrastructures available near the capital city Skilled person power – Because of the proximity of the site to state capital. d. Land Suitability – The identified patch of land should be suitable for establishment of manufacturing unit with regard to faster set up times of the basic utilities like Power and Water supply. skilled manpower should be available for effective utilisation of their skill and knowledge base. 4. Rural/Urban water supply Agriculture and Irrigation Sewerage Soil & Waste Pipes Electrical & Telephone cable conduits Effluents disposal 3. Economical –approachability and easy communication.4. Transport and Communication – The proposed manufacturing unit should be b. . transportation and other costs especially in procurement of raw material and pipe supply should be economical in comparison to other situations. e.0 Application of PVC Pipes: PVC Pipes of different diameters have widespread application in various fields. For transportation. 2.0 Proposed Project Site a. from the state capital.

Belghoria Gk Plastic. Patna Saket Tubes. A trend which has started emerging is replacement in the demand of steel pipes by PVC basically due to low cost. Kalyani Pankaj Plastic.1 Supply The promoter has made an initial study of the market and have found encouraging potential both in the retail outlets as well as from government/ institutional demand.[MANUFACTURING RIGID PVC PIPES] Project Report It is envisaged to produce 51000 tonnes of un-plasticised PVC pipes per annum of size range between 20 mm to 400 mm diameter with three machines. Polymer. Due to high cost of steel pipes the PVC pipes consumption is increasing every year by more than 10 % this is not only due to the increase in population. chilling plant. Patna Ashirwad Pipes. a market survey was conducted in eastern part of the country to understand the production status of the PVC pipes. N. Patna Trident Tubes. Nadia Polymer Products. Balasore Jaiswal Tube. 5.Calcutta 8000 T/A 250 T/A 200 T/A 200 T/A 180 T/A 180 T/A 100 T/A Tripura B. This would facilitate in having a common operator and common ancillary equipment like mixers. Patna Usha Poly tubes.D Pipes.Hoogly Sudhir Plastic Plastic india. but PVC pipes is steadily making inroads into 8. urbanization. 140 Kg/hour and 200 kg/ hour production capacity. communication and electrification etc. Tripura 1000 T/A From the above mentioned figures it be may seen that the total production in the eastern regions of five states is less than the production of UNIPLAS in New Delhi or less than the production of Jain tube. Siliguri Plastrain. Patna Gupta Poly tubes. . having 550 kg/hour. Balasore Duropipes. rural development schemes. Guwahati Brahamaputra Udyog Total 1800 T/A 1500 T/A 300 T/A 3600 T/A West Bengal S. the present level of state production is not sufficient enough to cater to the growing need of the state especially in the context of industrialisation. In this regard. compressor.0 Market Status 5. water circulation plant and laboratory testing facilities etc. Orissa Orissa Plastic. Bhubaneswar Kanta Pipes Total 50000 20000 15000 10000 180 95180 T/A T/A T/A T/A T/A T/A Total 5020 T/A Bihar Modi Pipes.5 lakh tonnes/ annum of steel pipes market every year. Bhubaneswar Mintu Industries. Guwahati Luit Asian. As estimated. The observation is reflected below. Patna 2700 1200 480 240 200 200 T/A T/A T/A T/A T/A T/A Assam Kamakhya Udyog. per capita income. Bombay.

2.0 Demand and Supply Gap: The present demand supply gap in the Eastern region itself is more than 10. 9. . of Orissa undertaking] Demand created by external aided projects like DFID. 3. Various other departments of government also use PVC pipes under their routine activities such as.000 Tonnes per year apart from the expected demand growth of 10% every year. the market size is about Rs 1350 crore in a five year period. The combined requirement of all these sectors along with private sector uses (agriculture. WHO. Aqua culture. 8.[MANUFACTURING RIGID PVC PIPES] Project Report urbanisation. it is obvious that state may fall short in meeting the emerging demand for PVC pipes if manufacturing units are not promoted. The PVC industry outlook also highlights the expected multi fold growth in domestic demand in the coming years.2 Demand The combined requirement of five states of Eastern region by minor irrigation department alone is 13000 Tonnes/annum. Even if we talk about Orissa. 7. 6. PHD & PWD of State government Telephone department State plans for water supply under minimum needs program State plans for urban water supply schemes Rural & urban housing schemes etc. 5. 1. Water resources Orissa Watershed Development Mission Orissa Construction Corporation Limited [Govt. 4. 6. Industries etc) is estimated to be about 28.000 Tonnes/annum. World Bank etc. So. and above increasing 5. programmatic thrust of government and over domestic/private demand for PVC pipes.

4.[MANUFACTURING RIGID PVC PIPES] Project Report 7.0 Plant and Machinery: The plan will have all indigenous machinery of following specification 1. Twin screw Extruder – 3 No (550 kg/hr. 200 kg/hr and 140 kg/hr capacity) High Speed Mixer and Cooler-2nos Chilling plant Scrap grinder Lathes Ancillary equipments like printing. 6. 5.1 Machinary. 3. 7. 7. socketing etc Centrifuge and Agitator for Solvent Cement Manufacturing. 2.PROCESS/PLANT DESCRIPTION .

[MANUFACTURING RIGID PVC PIPES] Project Report .

[MANUFACTURING RIGID PVC PIPES] Project Report .

[MANUFACTURING RIGID PVC PIPES] Project Report .

[MANUFACTURING RIGID PVC PIPES] Project Report .

[MANUFACTURING RIGID PVC PIPES] Project Report .

0 Machinery Sources .[MANUFACTURING RIGID PVC PIPES] Project Report 8.

Kolsite Klockner and Windsor Ferromatik Milacron Neoplast Blue Star Remi 9.L PINOLEX Vinyl Chemicals Ltd. I. 6. 2. 4.G.0 Utilities to Manufacture • • Electricity Connected load 12. 1. 1. 2. PVC resin [at 100%capacity] Additives Fillers Pigments 10.L DCW Import under O. 3.0 Raw Materials The raw materials to be used are.[MANUFACTURING RIGID PVC PIPES] Project Report The proposed machines will be procured from following sources i. 2. 5. 4.P.e. 4.C. 11. 3. 5.0 Land. 3. Building and Other Civil Works .0 Sources of Raw materials 1.

feet. feet. The manufacturing unit will have a Process Unit of around 10. a Raw Material STORE of around 12. Large amount of open land is required other than the Plinth area for temporary Storage of Finished goods.000 for five acres plus other Application costs involved.000 sq.75.000 sq feet.000 sq feet.) Sl.000 per acre comes to Rs. feet shall be Plinth area as detailed in the Figure below. A Finished materials STORE of 13. Staff room. Temple and Security Room. feet.50.802 sq feet. 62. Recreation room.000. a Administrative building of 13. MAIN MACHINARY Particulars Total Amount . a Godown of around 10.0 Estimated Cost of the Project on PVC Pipes 1. 11. It shall also have Staff Quarters.The Construction of Buildings and Civil Works will cost another Rs. Canteen.500 sq.35.315 sq.17.000 sq. out of which 78. The cost of Land being Rs 2. No.[MANUFACTURING RIGID PVC PIPES] Project Report The land required for the unit is 5 acres or 2. 13.

00 906.402.776.12 2.02 2999080. like elec bills.00 568.200.52.602 1516000 500000 73351594. Cooling tower(paharpur) Compressor Chilling plant 3 nos Bluestar Threading Machine 2 & 4 inch b TOTAL Add:Transport and insurance 4% Total With Transport and Insurance Add:Installation at 2% Total Cost of MACHINARY with Transport and Installation 2 3 4 5 6 7 8 9 10 11 10.000.00 270.177.351 5.324.00 1.698.155.600. Salaries.915.584.63.00 4. 1 Windsor machines KTS 550/400V KTS 200/200V KTS 140e/110 PVC LINE 250 injection Unit C55 PVC LINE 350 injection Unit C70 Suction Hose Machine Belling Machine for SWR fittings Spiral Hopper loader with vibrator Neoplast HSM 500 Neoplast HSM250 Lab Eqpmt.00 2.000.000.487.jeep) 6 Land Transport Vehicles(trucks 7662348.00 1.[MANUFACTURING RIGID PVC PIPES] Project Report in Rs. Furniture.000.00 3.00 498.) 2500000 .45.568 9.72 2. Phone bills.11.783 2.00 901.400 2 Electricals 3 Construction 4 Others 5 Rs.598.047 2.22 3.04 111.69.28 TOTAL Fixed Expenses Pre Operative Expenses (Office rent.000.378.174.528.000.002.985.433.55.144 16977895.11lacs.00 5.82.60. establishment exps. (Deepak) + others Lathes 3 nos.

e.0 Means of Finance: All the project cost will be met from own sources and Bank Finance i.733.0 Employment Generation The proposed PVC pipe manufacturing unit will employ a total of 45 persons at two different levels i. There will also be commission based employment of the marketing persons along with daily wage labourers on short term contractual basis. 15.00. . the project cost is contribution of the promoters & Bank Loan. The table reflects the person power in detail with their remuneration.000 (Total Project Cost) 14. 14 persons in the administrative section and 31 persons at the production and operation.[MANUFACTURING RIGID PVC PIPES] Project Report Preliminary Expenses: Architecture Consultancy Technology Consultancy Process And Production Consultancy Interior Decoration Total Preliminary and Pre Op Exps 1000000 500000 500000 500000 5000000 Total Fixed Expenses + Pre Op +Preliminary Expenses=Rs.52.52.000 = Rs.e.000+50. 7.83.

500 4.500 2.D.500 2.[MANUFACTURING RIGID PVC PIPES] Project Report Sl.000 18000 20.Total No. Office Assistants @ Rs.000 12.000 2.000 15. to M.000 88. of Persons 1 1 1 2 1 1 5 1 1 14 1 1 1 8 3 2 2 1 15 31 45 Monthly Salary 1. Availability of quality raw materials 3.D.A.e. 1.000 12. the Profitability is subject to the following three concerns i. No.] Accounts Officer P.200 10 11 12 13 14 15 16 17 18 16. 1 2 3 4 5 6 7 8 9 Personnel Designation Administrative Section Managing Director[M. Taxation policy of the Government In consideration to the above mentioned three points.0 Profitability In PVC Units.000 6. 6000 per person Computer Operator Store Keeper Security Personnel Peon Sweeper Total Production Section Works Manager Supervisor Qulaity Control Incharge Skillled Operator Semi Skilled Operators Skilled Mechanics Skilled Electricians Laboratory Assistant Unskilled Workers@Rs. Availability of continuous power 2.000 10.000 10. the solutions proposed are.00. a) Installation of a captive transformer for running the unit with uninterrupted power .000 6000 37.41.200 168700 30.000 6.000 20. 2500 each Total G.000 15.10.

The project plan is in conformity with the guideline of small scale industries. if necessity. b) Import of materials. c) Being a new industry. It is experienced that generally 10% of the total turnover is the net profitability of the unit.0 Conclusion: The proposed project is expected to contribute in minimising the demand and supply gap in the state and in the eastern region of the country. The manufacturers are committed to maintain the prescribed national quality standards. there are adequate reliefs regarding taxation available. . it is worth to mention that the promoter is adequately capable of implementing as well as operating the unit of this size as he has the required experience and expertise. In the context.[MANUFACTURING RIGID PVC PIPES] Project Report supply. 17.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.