TETRA PAK MANUFACTURING PLANT

[EIRI/EDPR/3895] J.C.: 2013XL

INTRODUCTION

Tetra Pak is one of the largest producers of aseptic carton packaging. The company
primarily operates within the B2B segment. However, they pay a special emphasis
on CSR specifically green sourcing. This paper will focus on the issues the company
faces as they try to be an environmentally friendly company in India. A SWOT
analysis will be done on the company, as well as some strategies that the company
can use to be sustainable in its endeavour.

Tetra Pak is a multinational food processing and liquid carton packaging company of
Swedish origin, founded in 1951 by Ruben Rausing. The company’s aseptic
packaging ensures perishable liquid foods to be stored and distributed even for long
periods of time. Tetra Pak has grown to become the leading company within its
business area and constitutes the majority of liquid carton packaging seen on the
market today. The company operates in more than 150 countries and employs over
21,500 people worldwide. In 2008, a total of 70,538 million liters of liquid food
products were sold in Tetra Pak packages. This was equivalent to 141,379 million
packages of different sizes and designs.

Tetra Pak produces packages designed to contain liquid products e.g. milk and juice.
These are low cost every-day products requiring low packaging costs while aspects
such as hygiene, design and durability leads to high development and material
costs. In 2009 Tetra Pak sold over 145 billion packages. Such quantities means that
even the smallest reduction in production time or material usage leads to great
profit. Thus the need for more accurate dimensioning of both package performance
and packaging processes are increasing as the need for optimization grows.

Simulating the entire packaging process, from laminated paper and liquid product to
finished packaged product is the long-term goal for Tetra Pak. This process involves
several branches of physics, often referred to as multiphysics. The most common
methods for simulating such processes are the Finite Element Method (FEM) and the
Finite Volume Method (FVM).

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FEM and FVM is numerical techniques for approximate solutions of partial
differential equations. Commercial programs such as Abaqus are widely used to
analyze physical problems in solid mechanics, fluid dynamics, thermodynamics etc.
using FEM. This report is focused on the sealing process of the Tetra Pak packages.
The sealings are made through compressing and heating of laminated paper through
which the plastic laminates melt and merge. This requires interaction between the
melted plastic laminates (Fluid mechanics) and the paper (Solid mechanics), a so
called Fluid Structure Interaction (FSI) which recently has been implemented in
Abaqus.

TETRA comes from the English word tetrahedron (tetrahedron, pyramid), i.e.
indicates the shape of the first carton for liquid foods.

PAK is the truncated form of the English word “pack” or “package”.

A unique combination of words gives the company the right to declare this name a
trademark and to present exclusive rights to its ownership.

A type of plasticized cardboard carton for milk and other drinks, folded from a single
sheet into a box shape.

Tetra Pak is the quite old and most trusted packaging company of Pakistan. Starting
its operations in 1982, the company has grown from strength to strength over the
last 21 years. Packaging of a high standard of products are enriching the lives of
millions with all the goodness of nature for a healthy lifestyle.

Today, the Tetra Pak continues to grow. It is reaching to more and more companies
for packaging with the passage of time. This means that Tetra Pak's customers enjoy
the advantage of being able to get multi-product solutions from a single source, with
matching equipment at every stage.

Tetra pack is a 6-layered technology with ultra-heat treatment and they can survive
for the long storage duration. They are sterilized initially and filled with carbon to kill
the germs. This 6-layered packaging technology allows retaining of the colour, taste
and nutrients to stay longer even for 12 months without the need for preservatives
or refrigeration.

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Suitable for different shapes, such as Brick shape, gable to shape, triangle
shape, and etc.

1. 3 PE layers: water proof, antiseptic, increase strength and thickness, protect

printed layer

2. 3 Bounding layers: reinforce the solid delivery ability between PE and

paper, and aluminum foil

3. Paper: printed layer and supporting layer, with certain strength, tenacity and
stiffness

4. Aluminum Foil: light and oxygen barrier

5. Modified PE: modify heat-sealing performance, increase sealing quality

6. 6layer PE- PAPER-EAA-AL-EAA-PE

UHT (Ultra High Temperature) processing was introduced at the beginning ofthe
20th century. At that time, the technology was used only as a pre-treatmentfor
product to be filled into cans for subsequent retorting. The first UHT-treated and
aseptically packaged products were in cans and were shown at an agricultural
exhibition in London in the mid 1920s. The product (milk) was not a commercial
success. During the early 1930s, aseptic canning was developed in the USA.

In 1961, aseptic packaging procedures were introduced using flexible packaging

material (a laminate of wax, paper and polyethylene): the Tetra Pak system (“Tetra
Classic Aseptic” or TCA system). The paper board carton and black coloring provided
protection against the entry of light. How-ever, gas barrier characteristics were
rather poor. In the meantime, UHT processing systems were in more general use.
After initial problems, the combination of UHT processing and aseptic packaging in
the TCA system gained market success (“long-life products”).

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 CONTENTS

INTRODUCTION
SUITABLE FOR DIFFERNENT SHAPES, SUCH AS BRICK SHAPE, GABLE TO
SHAPE, TRIANGLE SHAPE, AND ETC.
GENERAL TRENDS WITHIN LIQUID CARTONS
TRENDS WITHIN MILK AND OTHER DIARY PACKAGING
TRENDS IN JUICE PACKAGING
TRENDS IN FOOD- AND BEVERAGE PACKAGING MACHINERY
PLANT LOCATION
GENERAL CHARACTERISTICS OF THE DISTRICT
LOCATION & GEOGRAPHICAL AREA
TOPOGRAPHY
MAP OF GAUTAM BUDH NAGAR DISTRICT
LIST OF THE MEDIUM ENTERPRISES IN GAUTAM BUDH NAGAR & NEAR BY AREA
MAJOR EXPORTABLE ITEM BY NOIDA EXPORT PROCESSING ZONE (NEPZ)-
PRODUCTS-
TRANSPORT
METRO
NOIDA HAS EXCELLENT METRO CONNECTIVITY.
ROAD
A ROAD IN NOIDA
NOIDA-GREATER NOIDA EXPRESSWAY
RAIL/AIR
BUS
HISTORICAL BACKGROUND
LIQUID CARTON PACKAGING
BASIC STRUCTURE
PACKAGING MATERIAL STRUCTURE OF A LIQUID CARTON
PROTECTION AND PRESERVATION
PAPERBOARD PRINTING
LAMINATION AND CREASING
CUTTING
THE THREE MAIN PACKAGING MATERIAL CONVERTING STAGES
THE FORM/FILL/SEAL MACHINE
PAPER FEED
PUNCHING AND PATCHING
PULLTAB ATTACHMENT
LONGITUDAL STRIP APPLICATION
ASEPTIC BATH
TUBE-FORMING

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ASEPTIC RING
FOLDING
EXTERNAL CAPPING
PRINCIPLE LAYOUT OF A FORM/FILL/SEAL-MACHINE
ASEPTIC AND CHILLED SEGMENT
OPENING ATTACHMENT
THERMAL SEALING
ADHESIVES BONDING
DISTRIBUTION
PACKAGING LEVELS
PRIMARY PACKAGING
SECONDARY PACKAGING
TERTIARY PACKAGE
LIQUID CARTON PACKAGING OPENINGS
OPENING CATEGORIZATION
RESEALABLE OPENING
RECLOSABLE OPENING
NON-RECLOSABLE OPENING
1-STEP AND 2-STEP OPENINGS
STEP OPENINGS
STEP OPENING
TETRA PAK OPENINGS
PERFORATION™
EASY OPENING™
STRAW HOLE/ STRAWS
PULLTAB™
FIG THE PERFORATION™, EASY OPENING™, STRAW HOLE AND PULLTAB™
OPENING SOLUTIONS (COURTESY OF TETRA PAK AB )
GRANDTAP
BAJKAL
HURON
FIG THE GRANDTAP, BAJKAL, AND HURON OPENING SOLUTIONS (COURTESY
OF TETRA PAK AB)
RECAP™
FLEXICAP™
SIMPLYPULL™
FLIPCAP
FIG THE RECAP™, FLEXICAP™, SIMPLYPULL™ AND FLIPCAP OPENING
SOLUTIONS (COURTESY OF TETRA PAK AB )
TETRA PAK – BENEFITS
IT HAS FOLLOWING BENEFITS:
PROTECTION
PRESERVATION
COMMUNICATION

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CONVENIENCE
ASEPTIC PACKAGING
PROPERTIES OF ASEPTIC PACKAGING MATERIAL
ADVANTAGES OF ASEPTIC PACKAGING TECHNOLOGY
FEW ADVANTAGES IN ALL CATEGORIES
ADVANTAGES OF BULK ASEPTIC PACKAGING
ADVANTAGES IN PROTECTION
ADVANTAGES IN LOGISTICS
LOWER TRANSPORT WEIGHT
LOWER STORAGE COSTS
ADVANTAGES IN GENERAL
TYPICAL PACKAGING APPLICATIONS
SEALING TECHNIQUE AT TETRA PAK
FIGURE : MATERIAL LAYERS OF A TETRA BRIK ASEPTIC PACKAGE. 1)
POLYMER 2) PAPER 3) POLYMER 4) ALUMINUM 5) POLYMER 6) POLYMER
FIGURE : PRINCIPLE SKETCH OF THE MANUFACTURING OF THE LONGITUDINAL
SEALING (LS) AND THE TRANSVERSAL SEALING (TS).
FIGURE : PRINCIPLE SKETCH OF THE TS PROCESS, SHOWING THE DIFFERENT
PARTS.
PRODUCT MIX OF TETRA PAK
PRODUCT MIX
TETRA PAK PRODUCT MIX
TETRA BRIK
TETRA REX
TETRA TOP
TETRA BRIK ASEPTIC
TETRA CLASSIC ASEPTIC
TETRA GEMINA ASEPTIC
TETRA PRISMA ASEPTIC
TETRA WEDGE ASEPTIC
TETRA FINO ASEPTIC
TETRA EVERO ASEPTIC
TETRA RECART
LEVELS OF TETRA PAK PRODUCTS
CORE LEVEL
ACTUAL LEVEL
AUGMENTED LEVEL
MARKET SURVEY
TETRA PACK CONTAINER MARKET – MARKET SEGMENTATION:
BASED ON MATERIALS, TETRA PACK CARTONS, THE MARKET IS SEGMENTED
INTO,
ON THE BASIS OF PACKAGED PORTFOLIO, THE MARKET IS SEGMENTED INTO,
TETRA PACK CONTAINER MARKET - MARKET SEGMENTATION:

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BASED ON MATERIALS, TETRA PACK CARTONS, THE MARKET IS SEGMENTED
INTO,
ON THE BASIS OF PACKAGED PORTFOLIO, THE MARKET IS SEGMENTED INTO,
BASED ON END USER INDUSTRY, THE TETRA PACK CARTONS MARKET IS
SEGMENTED INTO
BASED ON THE APPLICATIONS, THE TETRA PACK CARTONS MARKET IS
SEGMENTED INTO
TETRA PACK CARTON MARKET - MARKET DYNAMICS:
TETRA PACK CARTON MARKET - REGIONAL OUTLOOK:
FIT FOR THE FUTURE
TETRA PACK LIQUOR MARKET
PLASTIC FILM AND SHEET MANUFACTURING METHODS
EXTRUSION
PRINCIPLE LAYOUT OF A SHEET EXTRUSION PROCESS
CALENDERING
PRINCIPLE LAYOUT OF A SHEET CALENDERING PROCESS
MULTILAYERED PLASTIC FILM AND SHEET MANUFACTURING METHODS
CO-EXTRUSION
PRINCIPLE LAYOUT OF A CO-EXTRUSION PROCESS
MULTILAYER CALENDERING
PRINCIPLE LAYOUT OF A CO-CALENDERING PROCESS
KNIFE SPREAD COATING
PRINCIPLE LAYOUT OF A KNIFE SPREAD COATING PROCESS
CURTAIN COATING
PRINCIPLE LAYOUT OF A CURTAIN COATING PROCESS
SUGGESTED PLASTIC FILM AND SHEET SHAPING METHODS
THERMOFORMING
PRINCIPLE LAYOUT OF A VACUUM FORMING PROCESS
FOLDING
FOLDING EXAMPLE WITH PREDEFINED FOLDING PATTERN
PROCESS OF MANUFACTURING
THEN, WITH THE HELP OF A LASER AND TEMPERATURE CONDITIONS, SUCH A
PATTERN IS OBTAINED.
THE FINISHED TEMPLATE IS WOUND ON SHAFTS
THESE BLANKS ARE INSTALLED IN THE PRINTING EQUIPMENT AND
THE PRINTING PROCESS TAKES PLACE ON A HUGE MACHINE.
EACH INK IS APPLIED SEPARATELY; IT REMINDED ME OF THE WORK
OF AN INKJET PRINTER.
THE CORRECT COLOR IS AUTOMATICALLY CONTROLLED.
AFTER PRINTING, THE LAMINATION PROCESS BEGINS - THE MOST DIFFICULT
AND SECRET SITE.
AFTER LAMINATION - CUTTING. THE FINAL STAGE OF WORK - SHRINK
PACKAGING.
PROCESS FLOW DIAGRAM

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STERILE SYSTEM TBA/8,, TBA/19
GENERAL ENVIRONMENT
CULTURAL AND SOCIAL ENVIRONMENT
ECONOMIC AND TECHNOLOGICAL ENVIRONMENTS
POLITICAL AND LEGAL ENVIRONMENT
FEDERAL, STATE, AND LOCAL REGULATION. LIMIT CHOICES AVAILABLE TO
ORGANIZATION.
COMPETITIVE ENVIRONMENT
POLITICAL CONDITIONS
DEMOGRAPHIC ENVIRONMENT
GLOBAL ENVIRONMENT
ECOLOGICAL ENVIRONMENT
THE “GREENING” OF MANAGEMENT
HANDLING OF WASTE
MACHINERY SUPPLIERS
RAW MATERIAL SUPPLIERS
ALUMINUM FOIL
PAPER BOARD
MACHINERY PHOTOGRAPHS
RAW MATERIAL PHOTOGRAPHS
PRODUCT PHOTOGRAPHS

APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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 COST ESTIMATION

Plant Capacity 1.00.00.000 Pcs/Day

Land & Building (5000 sq.mt.) Rs. 4.45 Cr
Plant & Machinery Rs. 65.10 Cr
Working Capital for 2 Months Rs. 143.14 Cr
Total Capital Investment Rs. 213.71 Cr
Rate of Return 52%
Break Even Point 28%

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