PROJECT REPORT

ALUMINIUM FOIL CONTAINER

PURPOSE OF THE DOCUMENT

T his particular pre-feasibility is regarding Aluminium Foil

Container unit.
The objective of the pre-feasibility is primarily to facilitate potential
entrepreneurs’ in project identification for investment and in order
to serve this objective; the document covers various aspects of the
project concept development, startup, marketing, and finance and
business management.

[We can modify the project capacity and project cost as per your requirement. We can also
prepare project report on any subject as per your requirement.]

Prepared By:

Institute for Industrial development

A unit of M/S Samadhan Samiti

Email: support@iid.org.in

Phone: +91 7408733333, +91 7607655555

 ALUMINIUM FOIL CONATINER

Introduction
Aluminium is the most widely used non-ferrous metal and is
extensively used in packaging materials. It is an excellent
material for creating all types of containers. However, despite
the fact that about seven billion aluminium foil containers are
produced annually, most packaging engineers and packaging
users know very little about the advantages that these
containers bring to the packaging and food service industries.
Specifically, aluminium provides an absolute barrier to protect
foods, whether on the shelf, in the cooler or in the freezer. It
can go from freezer to oven to broiler to microwave oven and
result in quality food products whether at home or in central
food processing operations. It is lightweight, so that it is easy
and economical to transport. It is formable so that it is available
in a wide variety of shapes and sizes. It can be printed, coated
or embossed. And, it is recyclable which results in a 95%
energy savings over that required to produce primary metal.
Aluminium foil containers are used to prepare, freeze, store,
transport, cook and serve a variety of foods. Containers made
from aluminium foil are the only containers that can be used in
all types of ovens: microwave, conventional, convection and
broiler. Moreover, its recyclability makes aluminium one of the
most environment friendly materials on earth, a key advantage
for planet conscious consumers and local governments.
Advantages of Aluminium Foil Container
Aluminium foil containers bring many advantages to the food
packaging market. In combination, these advantages position
Aluminium foil containers uniquely among material choices for
the food processing industry, the food service industry and
consumer alike. Because of their unique combination of
advantages, the Aluminium foil container qualifies as the
“perfect package” for numerous food packaging applications.
Among these advantages are:
 Consumer Friendly: Because foil can withstand wide
temperature changes better than other packaging materials,
it can go from freezer to oven to the dinner table without
changing containers
 Aluminium foil containers are designed so that they nest
very well, taking up little space.
 Aluminium foil isn’t a huge problem with regards to waste,
as aluminium is a natural part of the environment and
animals won’t eat it and suffer, unlike plastic.
 Depending on how you wrap the food, aluminium foil
container can help keep it warm a bit longer.

Uses of aluminium foil container

Aluminium foil containers are used to prepare, freeze, store, transport,
cook and serve a variety of foods. Containers made from aluminium
foil are the only containers that can be used in all types of ovens:
microwave, conventional, convection and broiler.

Aluminium Foil Container Market Analysis

According to Future Market Insights’ latest market report titled
“Aluminium Foil Containers Market: Global Industry Analysis 2013 –
2018 and Opportunity Assessment 2019 – 2027,” the growing demand
for cost-effective, light-weight, and single-serve packaging solutions is
likely to propel the growth of the aluminium foil containers market, during
the forecast period. Globally, the revenue generated by the aluminium
foil containers market has been estimated to be around US$3,092.0 Mn
in 2019 and is expected to increase at a CAGR of 5.4% in terms of value
throughout the forecast period.

Global demand for convenience and hygienic packaging solutions is

increasing exponentially, especially in food packaging. Aluminium foil
containers are gaining popularity in the foodservice industry due to their
recyclable, light-weight, and cost-effective nature.

Future Markets for Aluminium foil Container

Supermarkets (and outlets for consumer foods such as club stores and
large, multi-product retailers) are moving toward branded, fresh meat,
poultry and fish products, processed and packaged centrally for
distribution to consumer outlets. Many of these are now (or will be)
packaged in modified atmosphere packages, where the internal
atmosphere has been changed to extend shelf life and suppress the
growth of harmful microorganisms. Most of these packages require a
high barrier to gases and moisture, which is currently being provided by
foamed plastic trays or forms of paperboard with some type of barrier
lining. Foil containers have the potential to enter this emerging market by
providing barrier properties and a cook-in-the-container feature that most
current packages do not provide.

Description of Machinery & Equipment

Following machineries are required for Aluminium Foil Container

manufacturing process:

 Aluminium Foil container main machine: Semi-automatic &

automatic machine.
 Aluminium Foil container die: There are two types of dies that are
available in the market.
1. Single cavity Die
2. Double cavity Die
Note: Dies are available in market in different size based on the
requirement of the manufacturer like: 210 ML, 250 ML to upto 750 ML die
size.

Manufacturing Process

A typical machine can make aluminium foil containers ranging from 40

microns to 140 microns. The machine consists of several parts that come
into the manufacturing process. Manufacturing process of aluminium foil
container is as follow:

1. Foil Decoiler: the first part of the machine is the foil decoiler. A roll of
aluminium foil is placed in the decoiler, which unwraps the foil and
feeds it into the machine in straight sheets. The decoiler can have a
large roll placed in it which saves time as the roll does not have to be
changed often.
2. Alignment: The aluminium foil is then straightened so it is not out of
place when it is punched into aluminium foil containers. This is done
by the use of a tracking eye which aligns the foil so it is in the correct
place.
3. Oil Feeder: It also has a lubricator so the friction does not harm the foil
causing defective aluminium foil containers. The lubrication comes
from the oil feeder. The oil feeder is placed inside the machine itself
so the work environment does not become messy.
4. Tension Device: The machine also consists of a foil tightening
mechanism by the use of a tension device so the foil does not droop
or become loose during the whole process and create irregular
shaped containers.
5. Pneumatically powered press: The pneumatically powered press
compresses the sheet into the shape of the container. The press also
has an instant breaking mechanism to separate the newly formed
container from the leftover foil. The press can have single cavity or
multiple cavity moulds. The moulds decide the shape and style of the
aluminium foil container.
6. Collection of container at the end.
7. Packaging of goods.
Machinery & Equipment’s required:
Name Cost

Semi-automatic Aluminium foil container Machine 8-10 Lakh

Die:
1. Single cavity die 1 Lakh
2. Double cavity die 2.5 Lakh

 Cost of the machine is other than transportation cost.

 This project is prepared on the basis of Semi-automatic machine with
single cavity die size of 450 ML.

Land &Building required:

Land required 800-1,000 square feet

Approximate rent for the same is Rs. 18,000 - 25,000 per month.

Raw Material Requirement

Following raw material is required as the major raw material for the
manufacturing of aluminium foil container.

S.N. Description Amount

1 Aluminium Foil Rs. 230-240 Per KG
2 Punching oil Rs. 160-180 Per KG

Production of Aluminium Foil container

Aluminium foil container are produced in a batch of 100 pieces at a time

for 250ml, 450 ml and 650 ml size and are sold in boxes of 1000, 1500
number of containers.

Average raw material (cost per Batch of 100 Pieces): Rs. 70-75
Labour & Skill Requirement:

4 Manpower are required for the Aluminium Foil container Unit.

Includes:

1 Skilled Labour

2 Unskilled Labour

1 Helper

Aluminium Foil container license & registration

For Proprietor:
 Obtain the GST registration.
 Additionally, obtain the Udyog Aadhar registration Number.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1
2 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Requirement of required Manpower 1
Total time Required (some activities shall run 2-3 Months
concurrently)

Conclusion:
After completion of manufacturing process, product is ready to sell in the
market. Aluminium Foil containers are used for daily routine activities.
This machine can be installed & one can earn a good Margin of profit by
doing this business.
 FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 10.35 lakh and Working Capital limit of Rs. 3.60 Lacs
(in Lacs)
Own Bank
COST OF PROJECT PARTICULARS AMOUNT Contribution Finance
10.00% 90.00%
Building Civil Work

Plant & Machinery 10.62 1.06 9.56

Furniture & Fixtures and Other
Assets 0.88 0.09 0.79

Working capital 4.00 0.40 3.60

Total 15.50 1.55 13.95

MEANS OF
FINANCE PARTICULARS AMOUNT

Own Contribution 1.55

Bank Loan 10.35

Working capital Limit 3.60

Total 15.50
COMPUTATION OF PRODUCTION OF ALUMINIUM FOIL CONTAINER

Items to be Manufactured

Aluminium Foil Container of 450 ML

total Batch Production a day 100 Batch

One batch consists 100 Container

machine capacity per annum 30,000 Batch

Production of Aluminum Foil Container

Production Capacity Batch
1st year 60% 18,000

2nd year 65% 19,500

3rd year 70% 21,000

4th year 75% 22,500

5th year 80% 24,000
Raw Material Cost

Year Capacity Rate Amount

Utilisation (per Batch) (Rs. in lacs)

1st year 60% 72.00 12.96

2nd year 65% 74.16 14.46

3rd year 70% 76.38 16.04

4th year 75% 78.68 17.70

5th year 80% 81.04 19.45

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 1,500 1,625 1,750 1,875

Production 18,000 19,500 21,000 22,500 24,000

Less : Closing Stock 1,500 1,625 1,750 1,875 2,000
Net Sale 16,500 19,375 20,875 22,375 23,875
sale price per batch 140.00 144.20 148.53 152.98 157.57
Sales (in Lacs) 23.10 27.94 31.00 34.23 37.62
BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 10,000 1 10,000

Unskilled (in thousand rupees) 8,000 1 8,000

Total salary per month 18,000

Total annual labour charges (in lacs) 2.16

Utility Charges at 100% capacity (per month)

Particulars value Description
Power connection required 8 KWH
consumption per day 64 units

Consumption per month 1,600 units

Rate per Unit 7 Rs.
power Bill per month 11,200 Rs.
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 60% 65% 70% 75% 80%

SALES

Gross Sale

Aluminium Foil Container 23.10 27.94 31.00 34.23 37.62

Total 23.10 27.94 31.00 34.23 37.62

COST OF SALES

Raw Material Consumed 12.96 14.46 16.04 17.70 19.45

Electricity Expenses 0.81 0.87 0.94 1.01 1.08

Depreciation 1.68 1.43 1.22 1.04 0.89

Labour 2.16 2.27 2.38 2.50 2.63

Repair & maintenance 0.09 0.56 0.62 0.68 0.75

Consumables 0.46 0.56 0.62 0.68 0.75

Packaging Charges 0.36 0.39 0.42 0.45 0.48

Cost of Production 18.52 20.54 22.25 24.07 26.02

Add: Opening Stock /WIP - 1.54 1.71 1.85 2.01

Less: Closing Stock /WIP 1.54 1.71 1.85 2.01 2.17

Cost of Sales 16.98 20.38 22.10 23.92 25.86

GROSS PROFIT 6.12 7.56 8.90 10.31 11.76

Interest on Term Loan 0.92 0.81 0.58 0.35 0.12

Interest on working Capital 0.36 0.36 0.36 0.36 0.36

Rent 2.16 2.38 2.61 2.87 3.16

selling & adm exp 0.23 0.28 0.31 0.34 0.38

TOTAL 3.68 3.83 3.87 3.93 4.02

NET PROFIT 2.45 3.73 5.03 6.38 7.74

Taxation 0.01 0.28 0.56

PROFIT (After Tax) 2.45 3.73 5.03 6.09 7.17

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 2.80 4.73 7.36 9.85

Add:- Own Capital 1.55

Add:- Retained Profit 2.45 3.73 5.03 6.09 7.17

Less:- Drawings 1.20 1.80 2.40 3.60 4.75

Closing Blance 2.80 4.73 7.36 9.85 12.27

Term Loan 9.20 6.90 4.60 2.30 -

Working Capital Limit 3.60 3.60 3.60 3.60 3.60

Sundry Creditors 1.08 1.21 1.34 1.48 1.62

Provisions & Other Liab 0.20 0.30 0.45 0.54 0.68

TOTAL : 16.88 16.73 17.34 17.76 18.17

Assets

Fixed Assets ( Gross) 11.50 11.50 11.50 11.50 11.50

Gross Dep. 1.68 3.11 4.34 5.38 6.27

Net Fixed Assets 9.82 8.39 7.16 6.12 5.23

Current Assets

Sundry Debtors 2.45 3.26 4.65 5.13 5.64

Stock in Hand 2.62 3.64 4.53 4.96 5.41

Cash and Bank 1.98 1.45 1.00 1.55 1.88

TOTAL : 16.88 16.73 17.34 17.76 18.17

PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 1.55

Net Profit 2.45 3.73 5.03 6.38 7.74

Depreciation & Exp. W/off 1.68 1.43 1.22 1.04 0.89

Increase in Cash Credit 3.60 - - - -

Increase In Term Loan 10.35 - - - -

Increase in Creditors 1.08 0.13 0.13 0.14 0.15

Increase in Provisions & Oth lib 0.20 0.10 0.15 0.09 0.14

TOTAL : 20.91 5.39 6.54 7.65 8.91

APPLICATION OF FUND

Increase in Fixed Assets 11.50

Increase in Stock 2.62 1.02 0.89 0.43 0.45

Increase in Debtors 2.45 0.81 1.39 0.48 0.51

Repayment of Term Loan 1.15 2.30 2.30 2.30 2.30

Drawings 1.20 1.80 2.40 3.60 4.75

Taxation - - 0.01 0.28 0.56

TOTAL : 18.93 5.92 6.99 7.10 8.58

Opening Cash & Bank Balance - 1.98 1.45 1.00 1.55

Add : Surplus 1.98 (0.53) (0.45) 0.55 0.33

Closing Cash & Bank Balance 1.98 1.45 1.00 1.55 1.88
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

1.54 1.71 1.85 2.01 2.17

Raw Material

1.08 1.93 2.67 2.95 3.24

Closing Stock 2.62 3.64 4.53 4.96 5.41

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 2.62

Less : Creditors 1.08

Paid stock 1.54 10% 0.15 90% 1.39

Sundry Debtors 2.45 10% 0.25 90% 2.21

4.00 0.40 3.60

WORKING CAPITAL LIMIT DEMAND ( from Bank) 3.60

2nd Method

PARTICULARS 1st year 2nd year

Total Current Assets 7.06 8.35

Other Current Liabilities 1.28 1.51

Working Capital Gap 5.78 6.84

Min Working Capital

25% of WCG 1.44 1.71

Actual NWC 2.18 3.24

item III - IV 4.33 5.13

item III - V 3.60 3.60

MPBF (Lower of VI & VII) 3.60 3.60

3rd Method

PARTICULARS 1st year 2nd year

Total Current Assets 7.06 8.35

Other Current Liabilities 1.28 1.51

Working Capital Gap 5.78 6.84

Min Working Capital

25% of Current Assets 1.76 2.09

Actual NWC 2.18 3.24

item III - IV 4.01 4.76

item III - V 3.60 3.60

MPBF (Lower of VI & VII) 3.60 3.60

COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 10.62 0.88 11.50

Total 10.62 0.88 11.50

Less : Depreciation 1.59 0.09 1.68

WDV at end of Year 9.03 0.79 9.82

Additions During The Year - - -

Total 9.03 0.79 9.82

Less : Depreciation 1.35 0.08 1.43

WDV at end of Year 7.67 0.71 8.39

Additions During The Year - - -

Total 7.67 0.71 8.39

Less : Depreciation 1.15 0.07 1.22

WDV at end of Year 6.52 0.64 7.16

Additions During The Year - - -

Total 6.52 0.64 7.16

Less : Depreciation 0.98 0.06 1.04

WDV at end of Year 5.54 0.58 6.12

Additions During The Year - - -

Total 5.54 0.58 6.12

Less : Depreciation 0.83 0.06 0.89

WDV at end of Year 4.71 0.52 5.23

Additions During The Year - - -

Total 4.71 0.52 5.23

Less : Depreciation 0.71 0.05 0.76

WDV at end of Year 4.01 0.47 4.47

Less : Depreciation 0.60 0.05 0.65

WDV at end of Year 3.40 0.42 3.83

Less : Depreciation 0.51 0.04 0.55

WDV at end of Year 2.89 0.38 3.27

CALCULATION OF D.S.C.R

2nd
PARTICULARS 1st year year 3rd year 4th year 5th year

CASH ACCRUALS 4.13 5.17 6.25 7.14 8.06

Interest on Term Loan 0.92 0.81 0.58 0.35 0.12
Total 5.05 5.98 6.83 7.49 8.19

REPAYMENT
Instalment of Term Loan 1.15 2.30 2.30 2.30 2.30
Interest on Term Loan 0.92 0.81 0.58 0.35 0.12

Total 2.07 3.11 2.88 2.65 2.42

DEBT SERVICE COVERAGE RATIO 2.43 1.92 2.37 2.82 3.38

AVERAGE D.S.C.R. 2.58
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 10.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 10.35 10.35 - - 10.35

2nd month 10.35 - 10.35 0.09 - 10.35
3rd month 10.35 - 10.35 0.09 - 10.35
4th month 10.35 - 10.35 0.09 10.35
5th month 10.35 - 10.35 0.09 10.35
6th month 10.35 - 10.35 0.09 10.35
7th month 10.35 - 10.35 0.09 0.192 10.16
8th month 10.16 - 10.16 0.08 0.192 9.97
9th month 9.97 - 9.97 0.08 0.192 9.78
10th month 9.78 - 9.78 0.08 0.192 9.58
11th month 9.58 - 9.58 0.08 0.192 9.39
12th month 9.39 - 9.39 0.08 0.192 9.20

0.92 1.150
2nd Opening Balance

1st month 9.20 - 9.20 0.08 0.192 9.01

2nd month 9.01 - 9.01 0.08 0.192 8.82
3rd month 8.82 - 8.82 0.07 0.192 8.63
4th month 8.63 - 8.63 0.07 0.192 8.43
5th month 8.43 - 8.43 0.07 0.192 8.24
6th month 8.24 - 8.24 0.07 0.192 8.05
7th month 8.05 - 8.05 0.07 0.192 7.86
8th month 7.86 - 7.86 0.07 0.192 7.67
9th month 7.67 - 7.67 0.06 0.192 7.48
10th month 7.48 - 7.48 0.06 0.192 7.28
11th month 7.28 - 7.28 0.06 0.192 7.09
12th month 7.09 - 7.09 0.06 0.192 6.90
0.81 2.300
3rd Opening Balance

1st month 6.90 - 6.90 0.06 0.192 6.71

2nd month 6.71 - 6.71 0.06 0.192 6.52
3rd month 6.52 - 6.52 0.05 0.192 6.33
4th month 6.33 - 6.33 0.05 0.192 6.13
5th month 6.13 - 6.13 0.05 0.192 5.94
6th month 5.94 - 5.94 0.05 0.192 5.75
7th month 5.75 - 5.75 0.05 0.192 5.56
 8th month 5.56 - 5.56 0.05 0.192 5.37
9th month 5.37 - 5.37 0.04 0.192 5.18
10th month 5.18 - 5.18 0.04 0.192 4.98
11th month 4.98 - 4.98 0.04 0.192 4.79
12th month 4.79 - 4.79 0.04 0.192 4.60
0.58 2.300
4th Opening Balance

1st month 4.60 - 4.60 0.04 0.192 4.41

2nd month 4.41 - 4.41 0.04 0.192 4.22
3rd month 4.22 - 4.22 0.04 0.192 4.03
4th month 4.03 - 4.03 0.03 0.192 3.83
5th month 3.83 - 3.83 0.03 0.192 3.64
6th month 3.64 - 3.64 0.03 0.192 3.45
7th month 3.45 - 3.45 0.03 0.192 3.26
8th month 3.26 - 3.26 0.03 0.192 3.07
9th month 3.07 - 3.07 0.03 0.192 2.88
10th month 2.88 - 2.88 0.02 0.192 2.68
11th month 2.68 - 2.68 0.02 0.192 2.49
12th month(Subsidy
adjusted) 2.49 - 2.49 0.02 0.192 2.30
0.35 2.300
5th Opening Balance
1st month 2.30 - 2.30 0.02 0.192 2.11
2nd month 2.11 - 2.11 0.02 0.192 1.92
3rd month 1.92 - 1.92 0.02 0.192 1.73
4th month 1.73 - 1.73 0.01 0.192 1.53
5th month 1.53 - 1.53 0.01 0.192 1.34
6th month 1.34 - 1.34 0.01 0.192 1.15
7th month 1.15 - 1.15 0.01 0.192 0.96
8th month 0.96 - 0.96 0.01 0.192 0.77
9th month 0.77 - 0.77 0.01 0.192 0.58
10th month 0.58 - 0.58 0.00 0.192 0.38
11th month 0.38 - 0.38 0.00 0.192 0.19
12th month 0.19 - 0.19 0.00 0.192 -

0.12 2.30

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
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