PROJECT PROFILE OF PET BOTTLES

PRODUCT CODE : 22203

QUALITY AND STANDARDS : As per Customer’s requirements

PRODUCTION CAPACITY (ANNUAL) :

0.5 LTRS. = 16,50,000 NOS.
1.5 LTRS. = 34,50,000 NOS.
5.0 LTRS. =. 90,000 NOS.

MONTH AND YEAR OF PREPARATION : June,2020

PREPARED BY :

Branch M.S.M.E-Development Institute,

Katras Road, Matkuria, Dhanbad-826001(Jharkhand)
Phone No. : +91-326-2980189
E-mail. : brdcdi-dhan@dcmsme.gov.in

1. INTRODUCTION :

Bottles made from polyethylene terephthalate (PET) plastic material are

gaining traction globally, owing to various advantages offered by PET
bottles such as lightweight, flexibility, and unbreakable.

The PET Bottles Manufacturing unit is a project of Plastic Sector, in

which, the most convenience-size bottles are made from Polyethylene
Terephthalate. PET has become the material of choice for bottled
beverages because it is lightweight and shatter resistant, and PET has
been extensively tested for safety. PET resin has superior properties i.e.
attractive, pure, safe, good barrier, no leakage, design flexibility, recyclable,
etc. Bottles made with PET are widely used for everything from water and
fruit juice to soft drinks etc.
 A PET Bottles Manufacturing Unit with a capacity of 51,90,000 bottles
per year needs a capital investment estimated at Rs. 84,45,000/- for
construction and purchasing machinery & equipment. In addition to this, an
estimated sum of Rs.52,84,000 is required as working capital. The total
project cost is estimated at Rs. 1,37,29,000/-. .
The popular marketing sizes are 0.5 Ltrs., 1.5 Ltrs. & 5.0 Ltrs.

2. PRODUCTS AND ITS APPLICATION :

Most of the shampoo producing companies prefers PET bottles because of

its convenience both for the consumers and producers. It is easy to handle
and less weight compared to glass/tin bottles. While marketing it is
advantageous to have very distinct shapes and colours. Additional
products besides shampoos which can be packed in PET
bottles and containers would be oils, deodorants, talcum powder, creams,
hair tonic, containers, skin lotions etc.
3. Industry Outlook/Trend
Plastic and Polymer industries in India is growing at about 5% per annum.
There are mainly two types of polymers such as commodity plastics and
engineering plastics. The products in commodity plastics are well
developed and growing at lesser space then engineering plastics. The
trend in consuming industries is to have more sophisticated and attractive
packaging. Therefore the demand for well-designed and printed bottles
are ever increasing. Moreover glass packing material is being replaced by
plastic due to ease of production, reduced cost, printability and impact
resistance.
4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY :

The demand for PET blow molded items is increasing, on everyday

basis. Lot of consumer products are packed in PETmolded items. Hence,
market potential is not ahurdle for any new entrepreneurs as the personal
care sector is growing rapidly. Thesimplest shape to blow is a sphere and
this is the most economical in terms of surface are to content in a given
volume. Other shape preferred is oval. The consuming sector
such as shampoo and other personal care products are growing at the rate
of 14% per annum. Among application segment, beverage segment held
the highest market share in 2019, in the global PET bottles market. PET
is a popular choice of packaging for beverages such as soft drinks and
bottled water, owing to its advantages including ease of molding into
desired shapes.
Asia Pacific region was the largest PET bottles market globally, due to
significant demand from China, India, and Japan. The region held a
market share of 35% in 2018 in the global PET bottles market. Growing
demand for PET bottles from various growing industries such as food
and beverages, personal care industry is driving growth of the market in
this region.
5. IMPLEMENTATION SCHEDULE :

Sr. No. Particulars Time

1 The Time requirement for preparation of Project Two months

report
2 Time requirement for selection of Site One month

3 Time required for registration as MSME One Day

4 Time required for acquiring the loan Machinery Three months
procurement, erection and commissioning

5 Recruitment of laborer etc. One month

6 Trial runs One month

6. RAW MATERIAL REQUIREMENTS :

The major raw material is blow moulding grade PET. This is available
from Reliance Industries Ltd. and other Local Markets.
7. MANUFACTURING PROCESS :
PET bottles manufacturing process involves two basic stages of Pre-form
manufacturing and Bottle Stretch Blow Molding.

1. Pre-form manufacturing process consists of following steps:

a. Resin drying and dehumidification
b. Melting of resin and injection into mold
c. Injection blow molding
d. Primary cooling
e. Secondary cooling
f. Ejection and storage

2. Bottle Stretch Blow Molding, process involves:

a. Pre-form feeding
b. Pre-form heating
c. Transfer of heated pre-forms to blow wheel
d. Bottle stretch blow molding
e. Bottle ejection

The following properties of end product must be ensured during

manufacturing:
 Uniform wall thickness of the container
 Weight of different articles produced in a production run should be
consistent
 Uniform color dispensation throughout the article
 Specified dimensional accuracy.
8. PRODUCTION CAPACITY :

Since every bottle has to pass through both the processes of injection
molding and blow molding, so the total production capacity of the unit will
be determined by the bottleneck of the process. This means that the lower
of the capacities of the two processes will be the total capacity of the unit.
As the maximum capacity of injection molding machine for 0.5 liter
bottles is 5,500 and the capacity of blow molding machine for 0.5 liters
bottles is 18,000, so the maximum production of 0.5 liters bottles that can
be obtained from the unit is 5,500 bottles. Similarly, the total production
capacities of the 1.5 liters and 5.0 liters bottles can be worked out. The
following Table summarizes the production capacities of the three sizes of
PET bottles :

Product Injection Blow Maximum Annual % Share

Moulding Moulding Production Installed In
Production Production of unit per Capacity Production
Per day Per day day
0.5 Litres 5500 18000 5500 16,50,000 31.79%
1.5 Litres 12500 11500 11500 34,50,000 66.47%
5.0 Litres 300 3000 300 90,000 1.74%
Total 51,90,000 100%
9. FIXED CAPITAL. :
A. LAND & BUILDING :
For the proposed project, an area of about 5,000 sq. ft. is required. The details of the
area required for different activities are given below:

Sl. Description Area (Sq.ft.) Cost per Total (Rs.)

No. sq.ft.
1. Management Building 100 1500 1,50,000
2. Production Area 1200 800 9,60,000
3. Raw-Material Store 200 700 1,40,000
4. Finished Goods Store 500 700 3,50,000
5. Workshop 600 700 4,20,000
Total Construction Cost 2600 20,20,000

B. LIST OF MACHINERY REQUIRED :

Sr. Particulars Nos. Rs in lakhs
No.
1 Fully Automatic blow 01 No. 18.00
Moulding machine
2 Fully Automatic injection 01 No. 20.00
moulding machine
3 Compressor 3 HP capacity 01 No. 2.50
4. Cooler Tower 01 No. 2.00
5. Lathe Machine 8’ 01 No. 1.00
6. Shaper 26” 01 No. 0.75
7 Mould& Dies 06 Nos. 3.00
8. Generator Set 50 KWH. 01 No. 8.00
5 Electrification and erection 5.00
------------------------------------------------------
Total = 60.25
Furniture - 2.00
Pre-operative Expenses - 2.00
-----------------------------------
Grand Total. =. 64.25
 TOTAL FIXED CAPITAL. = Rs. 84.45 Lakhs

10. WORKING CAPITAL ( PER MONTH) :

a. MANPOWER REQUIREMENT :

Sr. No. Particulars Nos. Salary(Rs.)

Per Month
1 Production Engineer cum Manager 1 40,000
2 Sales Executive 2 40,000
3 Accountant 1 15,000
4 Store Keeper-cum-Clerk 1 10,000
5 Watchman 1 5,000
6 Supervisor 2 16,000
7 Technicians 2 24,000
8 Workmen 15 75,000
------------------------------------------------------------
Total = 1,78,000

b. RAW-MATERIAL REQUIREMENTS (PER MONTH):

Sl. Size No. of Raw-Material Rate of Value(Rs.)

No. Bottles per Consumption Granules
month per Bottle /Kgs.
Weight (Grams) (Rs.)

1. 0.5 Ltrs 1,37,500 15.75 60 1,29,940=00

2. 1.5 Ltrs. 2,87,500 34.65 60 20,79,000=00
3. 5.0 Ltrs. 7,500 350.20 60 1,57,590=00
TOTAL = 23,67,000=00
C. UTILITIES ( PER MONTH) :

Electricity Rs. 20,000=00

Water Rs. 2,000=00
--------------------------------------
Total =. Rs. 22,000=00

D. OTHER CONTINGENT EXPENSES (PER MONTH):

i. Postage and Stationery 1,000=00

ii. Telephone 2,000=00
iii. Advertisement and Publicity 5,000=00
iv. Transport charges 5,000=00
v. Consumable stores 5,000=00
vi. Repairs and Maintenance 5,000=00
vii. Tax 37,000=00
viii. Insurance 5,000=00
ix. Miscellaneous Expenditure 10,000=00
---------------------------------
Total. = 75,000=00

11. Total Working Capital per Month =. 26,42,000=00

Total Working Capital =. 52,84,000=00

(on 2 months basis).
12.. Total Capital Investment (Rs.)

(i) Fixed Capital 84,45,000=00

(ii) Working Capital 52,84,000=00
------------------------------------
Total = 1,37,29,000=00

Machinery Utilization The bottleneck equipment for the manufacture of

PET Bottle is injection-moulding machine. The capacity of the machine is
51,90,000 Nos. of Bottles per annum on single shift basis.

13. FINANCIAL ANALYSIS :

1. Cost of Production (per year) (Rs.)

Total recurring cost 3,17,04,000=00

Depreciation on building @5% 1,01,000=00
Depreciation on machineries@10% 5,02,500=00
Depreciation on Furniture @ 10% 20,000=00
Depreciation on Mould & Dies@20% 60,000=00
Interest on total investment @ 13% 17,85,000=00
----------------------------
Total = 3,41,72,500=00
(Say) = 3,41,73,000=00
14. Turnover (per year):

Sl. No. Item Qty. Rate(Rs.) Values (Rs.)

1. 0.5 Ltrs. Bottle. 16,50,000 Nos. 3.60 59,40,000=00

2. 1.5 Ltrs. Bottle. 34,50,000 Nos. 7,50. 2,58,75,000=00
3. 5.0 Ltrs. Bottle. 90,000 Nos. 85.50. 76,95,000=00
-------------------------------------
TOTAL. = 3,95,10,000=00

15. PROFIT = Turnover. – Cost of Production

=. Rs. ( 3,95,10,000 – 3,41,73,000)
=. Rs. 53,37,000

Tax = Rs.4,44,000=00

Net Profit = Rs.48,93,000=00

Net Profit. X 100

Profit Ratio. =. ----------------------------
Turnover

48,93,000 x 100
=. -----------------------------
3,95,10,000

=. 12.38%
16. RETURN ON INVESTMENT:

Net Profit Per year × 100

Rate of return = ----------------------------
Total investment

48,93,000 X 100
= ---------------------------- =. 35.64 %
1,37,29,000

17. Break-even Point (% of Total Production Envisaged) :

Fixed Cost ( Rs.) :
a) Depreciation on machinery and equipment 5,02,500=00
b) Depreciation on building 1,01,000=00
c) Interest on total capital investment 17,85,000=00
d) 40% of salary and wages 8,54,400=00
e) 40% of other contingent expenses excluding insurance 3,36,000=00
--------------------------------
Total =. 35,78,900 Or say 35,79,000

F.C. × 100 35,79,000 x 100

B.E.P. = -------------------- = ------------------------------
F.C.+ Profit. 35,79,000 + 48,93,000

35,79,000 x 100
= --------------------------
84,72,000

=. 42.24 %
Addresses of Machinery and Equipment Suppliers :

1. M/s. DGP Windsor India Ltd.

E-6, U2 Road, Wogle Industrial Estate,
Thane-400604

2. M/s. Sunanda Industrial machinery,

A Division of Mafatlal Industries Ltd.
109, Standard House, 83, Maharshi Karup Road,
Mumbai

3. M/s. Indian Hydraulic Inds. Pvt. Ltd.

70, Shivaji Marg Indl. Area,
New Delhi-15

4. M/s. Ferromatik Milacron India Ltd.

Plot No. 92, Phase-1 G.I.D.C Vatva,
Ahmedabad-382445.

Addresses of Raw Material Suppliers :

1. M/s. Indian Petrochemicals Corporation Ltd.

P.O. Petrochemicals Township,
Vadodara-391346, (Gujarat.)

2. M/s. Reliance Industries Ltd.

Swastik Mill Compound,
V.N.Purav Marg. Chembur,
Mumbai-400 071.

3. Gas Authority of India Ltd.

16, Bhikaji Cama Place,
R. K Puram,
New Delhi-110066.

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