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BLOW

MOUL
DED
PLAST
IC
PROD
UCTS

Project Profile
On
Blow Molded Plastic Products

Location

INDEX:
1.
2.
3.
4.
5.

Project at a glance
Introduction
Scope of the Project
Constitution / Sector
Background of the Promoter

6. Product details
7. Process
8. Process Flowchart
9. Raw materials
10.
Marketing
11.
Location Advantages
12.
Incentives / Subsidies
13.
Licenses
14.
Project Cost & Means of Finance
15.
Notes on Project Cost
16.
Notes on Means of Finance
17.
Utilities
18.
SWOT Analysis
19.
Assumptions
20.
Financial Statements

Project at a Glance
1.
2.
3.
4.

Name of the Unit


Office
Location
Line of Activity

Blow Molded Plastic Products

5.
6.
7.
8.

Sector
Constitution
Name of the Promoter
Project Cost & Means of
Finance
PROJECT COST
AMOUNT

Land
Buildings
Machinery

Lease
Lease

Manufacture of Blow Molded


Plastic Products
Macro
Proprietor

MEANS OF
FINANCE
Capital
Term loan

AMOUNT
Rs in Lakhs

Working Capital
Total
9. Promoters Contribution
10.
Power
11.
Employment

Working Capital
loan
Total
5%
HP

Introduction
Plastic have played a vital role in the growth phase of the Indian economy
and continue to do so. From packaging to agriculture, automobiles and
electronics plastics have revolutionized all areas because of its functionality,
economics, aesthetics and reliability. Plastic have made all products
affordable to the Indian consumer and have helped in raising the lifestyle
of the common man. Consequently, a lot more products manufactured in
India today either contain plastics or are contained in plastics.

Thermo-plastic materials like High Density polythene (HDPE), Poly-vinyl


chloride (PVC) can be blow molded into containers of different sizes and
shapes. Some of the common items that are produced include buckets,
mugs, jugs, & jerry cans. In bulk quantity is stored in over-head tanks made
of concrete, galvanized steel sheet and mild steel in case of very big tank.
Due to heavy load of such tank, the supporting structures have to be strong

and are consequently very costly. Plastic tank, being very light as well
corrosion resistant and available in ready to use condition, can be installed
at a nominal cost on any roof top.

Product
Plastic containers up to 5 liters capacity are generally used for domestic
purpose. The plastic tank between 500-2000 ltrs. has also widening use
such as water storage tank, Chemical storage tank, grain storage tank etc.
Scope of the Project
The envisaged project is to Manufacture of Blow Moulded Plastic products
at(Dist) and the administrative office at . The Project cost is estimated of
Rslacs. The installed capacity is per annum with 8 working hours in a day and
300 working days in a year .The operating capacity is assumed 60%, 70% and
80% in first, second and conceding year operations, The unit is eligible all
incentives as per latest GO
Constitution & Sector
Constitution
Blow Molded Plastic products, unit is constituted as a proprietary concern
for Manufacturing of Blow Molded Plastic products Products.
Sector:
The proposed sector comes under micro Sector. The promoter has already
obtained registration Certificate from District Industries Centre, Visakhapatnam.
Background of the Promoter
Mr/Ms/Smtw/o
aged years, residing at D.No.
He/ She passed B.Sc.
Basically;He/ she came from business family and well known about business.
He /She is an income tax assess He /She is having some sort of experience in
the same line of activity He /She can able to invest necessary amount as and
when necessary. He/ She is Proprietor of the firm
Location & its Advantages

LAND: The proposed location of the Unit is situated at. The location of the
industry has considerable influence on the techno-economical facility of the
project. There are various factors contributing to the functioning of an industry
and following are the primary factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:

1.
2.
3.
4.
5.
6.

Availability of labor at economically rate.


Adequate supply of electricity power.
Adequate supply of water throughout the year.
The site is well connected with road facility.
Banking facilities and Government supports.
Adequate Transport facilities for economical transportation of finished
product and Spare parts.
7. Nearness to the Market.
8. As the area is developing area, the setting up of a unit in this will help
the people to progress both socially and economically. There are several
Engineering Colleges around the proposed unit.

Incentives / Subsidies
The following incentives are available for Micro and Small Enterprises
(MSEs):
1. 100% reimbursement of Stamp duty and transfer duty paid by the
industry on purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings and
also mortgages and hypothecations.

3. 25% rebate in land cost limited to Rs. 10.00 Lakhs in Industrial Estates/
Industrial Parks.
4. 25% Land conversion charges for industrial use limited to Rs. 10.00 lakhs.
5. Fixed power cost reimbursement @ Rs.0.75 per unit (upper ceiling) on the
proposed revised rate (2010 -11) for 5 years from the date of
commencement of commercial production. Incase decrease in Power Tariff;
the reimbursement will be reduced proportionately.
6. 15% investment subsidy on fixed capital investment subject to a
maximum of Rs. 20.00 Lakhs.
7. Reimbursement of 100% VAT/CST or State Goods and Services Tax (SGST)
for a period of 5 years from the date of commencement of commercial
production to Micro Enterprises.
8. Reimbursement of 50% VAT/CST or State Goods and Services Tax (SGST)
for a period of 5 years from the date of commencement of commercial
production to Small Enterprises.
9. Interest subsidy under PavalaVaddi Scheme on the term loan taken on the
fixed capital investment by New Micro and Small enterprises in excess of
3% per annum subject to a maximum reimbursement of 9% per annum for
a period 5 years from the date of commencement of commercial
production.
10.
Seed capital assistance to First Generation entrepreneurs to set-up
Micro Enterprises @ 10% of the Machinery cost , which will be deducted
from the eligible investment subsidy
11.
50% reimbursement of cost involved in skill up gradation and training
the local man power limited to Rs.2000 per person.
12.
50% subsidy on the expenses incurred for quality certification /
patent registration limited to Rs. 2.00 Lakhs for MSEs
13.
25% subsidy on specific cleaner production measures limited to Rs.
5.00 lakhs.
14.
To extend investment subsidy to the identified service activities
related to industries setup in all Municipal Corporation limits in the state
as per the list appended as Annexure-II
Licenses
The following licenses will be required for the Starting up the Industry:
1.
2.
3.
4.
5.
6.

Part I
Single Window approvals
Panchayati
Inspector of Factories
Pollution
Electricity

7. VAT
8. Town & City Planning

Market Potential
From a modest beginning in the late 1950s the plastic industry in India has
acquired a great deal of versatility and sophistication. The industry has
especially taken off in the post liberalization era. The new found business
environment and abundant domestic availability of raw materials has
aided the double-digit growth for plastics consumption in the country.
Keeping in view the pattern of uses of jug, mug, bucket and jerry can in
urban and rural areas, there is a substantial demand of about 60 to 65
lakhs numbers for assorted products. On 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 pcs. of 1000 ltrs. 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.
Manufacturing Process
The main product is manufactured on a semi automatic extrusion blow
moulding machine. The main process steps involved are:
1.
Plastic material in the form of granules is subjected to heat
and pressure in an extruder.

2.
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.
3.
Suitable parison is then inserted in a female mould and air is
blown into parison to force the moltan plastic against the sides of the
mould.
4.
The material is then cooled before removal from the
mould.
5.
The article is then trimmed to remove flashes.
Process Flowchart

Raw Materials
The major raw material required is HDPE. About 27.00 MT of HDPE is required
per year. HDPE is being manufactured by a many Industries in India. After
setting up of Gas Cracker in Andhra Pradesh, both HDPE and PVC will be
available within the state

Machine Specification

Sl.
No
1.

Particulars
Semi-Automatic extrusion blow moulding
| machine
consisting:
a) 50 mm screw extruder motor, variable speed drive
and electrical control cabinet 10 H.P
b) cross head dies(single,double and triplecore ) and
spacer
c) Mould closing and opening unit with hydraulic System

2.

Compressor with motor 5 H.P

3.

Water Pump with 1 H.P

4.

Moulds, dies, tools etc

Project & Means of Finance


PROJECT COST

AMOUN
T

Land

Lease

Buildings

Lease

Machinery

MEANS OF
FINANCE
Capital

Term loan

Working Capital

Working Capital
loan

Total

Total

Promoter Contribution

: 5%

Notes on Project Cost

Land & Buildings:

AMOUNT

The proposed unit is being set up at and the administrative office at. The
promoter already acquired rented building for setting up the unit. The location
is quite suitable for setting up the unit.

Plant & Machinery:The machinery and equipment worth of Rs. lacs are required to run the unit.
The promoter has already approached reputed suppliers, obtained quotations
and enclosed the same for your reference.
Sl.
No
1.

Particulars

2.

Semi-Automatic extrusion blow


moulding | machine consisting:
d) 50 mm screw extruder motor,
variable speed drive and
electrical control cabinet 10 H.P
e) cross head dies(single,double and
triplecore ) and spacer
f) Mould closing and opening unit
with hydraulic System
Compressor with motor 5 H.P

3.

Water Pump with 1 H.P

4.

Moulds, dies, tools etc

Amount
Rs.

7.50 Lakhs

Working Capital:-

An amount of Rs. lacs provided towards working capital facility to run the unit
in smooth levels. The detailed working requirement placed as annexure.

Notes on Means of Finance


1. CAPITAL:

The promoters capital was fixed at Rs. Lac.


2. TERM LOAN:
The unit desires to avail Term Loan of Rs. lacs from Bank/Financial Institute to
meet part cost of the project cost, which works out to 95% of the total project
cost of Rs. lacs. The amount would be repayable in 28 quarterly installments
of Rs. lacs each with a moratorium of twelve months from the date of
commencement of Commercial Production. However, the interest on the term
loan would be payable as and when it is applied on the account. The detail of
the repayment programmed is placed in this report.

Utilities & Services

POWER:
The Unit will need a total connected load of 26 HP
WATER:
The unit requires 5,000 Liters of water per day.
EFFLUENTS:
There are no harmful effluents generated in the process.
TRANSPORTATION:
The proposed unit is located at (Dist) There is no problem for
transportation of raw material and finished goods.
MANPOWER REQUIREMENTS:
The unit will be employing 8 Nos. of workers besides 2 Nos. of
administrative staff. All the above persons can be recruited locally without
any difficulties.

SWOT Analysis

STRENGTH:
The unit is located at (Dist.)
The promoters are having some sort of experience in the same line of
activity
WEAKNESS:

The unit has competition from the existing units as the proposed unit is
having latest technology and by the government encouragements to start new
industry the units can competent with the old industries.

Assumptions Underlying for Preparation of Financial Statements


Installed Capacity/ Machine
hours

40x60x8/day in one shift operations of 8


=19,200
=1
= 19,200
300 days

No of Machines
Productions in a day
No of Working days
Installed Capacity
Capacity

: 19200 * 300 = 57, 60,000 piece @ 100%

Operating Capacity is assumed as under :Description


Paper cups/plates
(nos in lacs)
Utilisation(%)

2011-12
34.56

2012-13
40.32

2013-14
46.08

60

70

80

Raw materials Requirement


Unit

Rate per Unit

Stack board
7,64,920

14.71 MTS

Value Rs.
52000/MT

1. One tonne Stock Board contains 9400 sheets.


2. One sheet can produce 25 cups of hot drinks or 15 cups of cold drink cups

Stores &Spares :- Stores and Spares are estimated of Rs.30,000 in a year.

Power &Fuel :- Power and Fuel is estimated of Rs.5,000 per month.


5,000 * 12 = 60,000

or say

: 0.60 lacs

Wages :- Wages are calculated as under


Operators
Unskilled workers
Skilled

1 Nos. * Rs.5,000/- Per Month = 5,000


3 Nos. * Rs.2,500/- Per Month = 7,500
1 nos =Rs 4,000/per month
4,000
16,500 * 12 = 1,90,000
29,700

Add:- 15% fringe benefits


-----------

2,27,700
-----------or say : 2.27 lacs

Repairs &Maintenance :- Repairs and Maintenance are estimated of Rs.24,000 /P.A.


Rent, Rates &Taxes :- Rent, Rates & Taxes are estimated of Rs.24,000 per
annum.
Other Manufacturing Expenses :- Other Manufacturing Expenses are estimated
of
Rs.24,000 per annum.
Salaries :- Salaries calculated as under.
1. Salesman

2 No. * Rs3,500/- per Month * 12 Months = Rs.84,000

Management Remuneration :- Management remuneration is estimated at


Rs.5,000/- per Month i.e. Rs.60,000/- per annum
Administrative Expenses :- Administrative Expenses are estimated Rs 30,000
per year.
Selling Expenses: - Selling expenses are estimated at 2% on Sales
SALES:
Paper cups 34,56,000 @0.40/per piece = Rs 13,82,400

Depreciation :- Depreciation was been calculated on written down value


method
Plant & machinery

25%

Interest :- Interest has been calculated as per effective rate


Term Loan
Working Capital
%

: 14.5%
: 14.00%