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Project Report on Mfg. Unit of Blow Moulded Containers
Bluejay Packaging 12-13-1086/1, Plot No.78, Kimty Colony, Shiridi Sai Nagar, Tarnaka, Sec’bad - 500 017. Tel.: 27016135/40269625, , e’mail:
[email protected]
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Cooling Towers
Chilling Plant
Main MachinerY
Scrap Grinder Moulds
Air Compressor
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Contents Summary Introduction Basis & Presumptions Process of Manufacture Blow Moulding Process Location of Unit Unit Name Financial Analysis Financial Aspects Break Even Analysis Repayment Schedule Machinery Suppliers Machine Details Blow Moulding Machine Scrap Grinder High Speed Mixer Quality Checking Tests Moulds
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Summary 1.
Name of the unit
Bluejay Packaging
2.
Type of Project
HDPE Blow Moulded Containers (High-density polyethylene)
3.
Constitution
Proprietor ship Firm
4.
Production Capacity
170 TPA (Tonnes per Annum)
5.
Location of the unit
Cherlapally Phase III
6.
Total Project
Rs. 27,00,000.00
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INTRODUCTION Packing Industry is one such industry where lot of SMES are concentrated. In India the consumer pracking is undergoing adramatic change in recent past. In many Industries the plastic containers are replacing conventional metal containers and glass containers because of their comparatively better properties and ease of handling and transportation. Small size plastic containers are used for packing of drugs, pharmaceuticals, insecticides, food items etc. The plastic blow moulded containers are made from HDPE ( High-density polyethylene), LDPE (Lowdensity polyethylene ), PP (Polypropylene) etc. Blow moulded plastic containers are finding great demand in modern era. In replacing the traditional Metal / Non Metal and Glass containers throughout the world. With latest trends in Blow Moulding technology and advanced machinery and National and International standards moulds and dies, many types of packaging containers are manufactured with accurate tolerance and fine quality. To suit the requirement of each and every product manufacturing. These products includes Pet bottles, Dropper bottles, Upper Handle bottles, Open top drums, wide mouth drums, Narrow mouth drums, Barrels, Jerry Cans & Carboys, Square Jars, Round Jars, Rib Jars, Thin walled food packaging containers etc. They are of different types and designs that are manufactured to cater the need of packaging. With high quality raw materials procurement, blow moulded articles and containers are manufactured with superior quality associated with convenient shapes and sizes,
Strong and Sturdy
construction, Compact designs, Compatibility, Safe to use etc. AS there is very good demand for plastic containers of various sizes and shapes and quality to meet the requirment of one and all. Though there are lot of products can be manufactured by blow moulding technology. Are hope ful of aiihably we would like to maintain the following in order to fulfill the needs of our clients and consumers and I hope I can capture good market. Share with in a shortening.
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v Strong and Sturdy: The products are made out of special grade
High Density
Polyethylene (HDPE) with excellent strength to withstand all transit hazards in any conditions. v Standard Designs: It includes wide range of latest & standard designs in packaging products to provide and meet the requirement of each client or end user with latest innovative designs and products with ease in handling to provide with complete bulk packing solutions. v Compatibility: The material used in production i.e. High Density Polyethylene (HDPE) is of food grade (certified ) and compatible with food chemicals, petroleum products, hazardous chemicals, Resins etc. v Safety: The products goes through with multiple tests to pass all of them and use certified virgin raw material only to give out complete packing solution. v Packaging Standards: The products are also confirms national and international packaging standards and are listed with IIP (Indian Institute of Packaging) to provide UN Certification and other testing requirements. v Price : Believing in right & fair price policy, in which we are ready to share information to make the customer or end user comfortable about on their purchasing decisions.
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Promoters The promoter Mr. G. Suresh Babu as an SSI unit. Is the main promoter of Spectrum Designers. Who is having enough of experience since 2001 closely associated with Dr. Reddy’s Laboratories in designing. Printing & Packaging of different consumers packs of Pharmaceuticals manufactured by Dr. Reddy’s Laboratories Hyderabad, as inside ancillary having successfully assuming the unit, along with other clients. As backword integration and on also encouraged by lot existing clients who is taking our services in designing the packing material other literature and advertising and publishing material right from ides developing and designing stage. Encouraged by the enquires and the confidence and the assurance offered by the exciting clients and known customers related and associatis it is thought to promote their unit in the name of ORIOLE PACKAGING as a different manufacturing unit.
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TECHNOLOGY BIS SPECIFICATIONS SCOPE a) Formulation of Indian Standards on rigid, semi-rigid and flexible plastic containers, closures and their methods of test. b) To co-ordinate with the work of ISO/TC 122 (Plastic Packaging only) so far as it concerns its own scope of work. c) To co-ordinate with the work of ISO/TC 61 ‘ Plastics ‘ so far as it concerns its own scope of work.
SCOPE Sl.No.
IS No.
Title
1.
IS 7408 (Part 1/ Sec 0): 2000
Blow moulded polyolefin containers Part 1 Up to 5 litres capacity (Second revision)
2.
IS 7408 (Part 2/ Sec 0): 2000
Blow moulded polyolefin containers Part 2 Up to 5 litres up to and including 60 litres capacity (first revision).
3.
IS 7408 (Part 3/ Sec 0): 2000
Blow moulded polyolefin containers Part 3 Closed head containers over 60 litres, upto and including 250 litres capacity ( first revision)
4.
IS 8747:1977
Methods of tests for environmental stress-crack resistance of Blow moulded polyethylene containers
5.
IS 1080 : 1994
Blow moulded HDPE containers for packing of vanaspati ( second revision)
6.
IS 15473 (Part 0/Sec 0) : 2004
Blow moulded HDPE containers for packaging of edible oil specification.
PACKAGING Blow molding is a manufacturing process that is used to create hollow plastic parts by inflating a heated plastic tube until it fills a mold and forms the desired shape. The raw material in this process is a thermoplastic in the form of small pellets or granules, which is first melted and formed into a hollow tube, called the parison. There are various ways of forming the parison, as explained below. The parison is then clamped between two mold halves and inflated by pressurized air until it conforms to the inner shape of the mold cavity. Typical pressures are 25 to 150 psi, far less than for injection molding. Lastly, after the part has cooled, the mold halves are separated and the part is ejected. Parts made from blow molding are plastic, hollow, and thin-walled, such as bottles and containers that are available in a variety of shapes and sizes. Small products may include bottles for water, liquid soap, shampoo, motor oil, and milk, while larger containers include plastic drums, tubs, and storage tanks. Blow molded parts can be formed from a variety of thermoplastic materials, including the following: Low Density Polyethylene (LDPE) High Density Polyethylene (HDPE) Polyethylene Terephtalate (PET) Polypropylene (PP) Polyvinyl Chloride (PVC) As mentioned above, there are different methods used to form the parison which distinguish the following three forms of blow molding: Extrusion blow molding An extruder uses a rotating screw to force the molten plastic through a die head that forms the parison around a blow pin. The parison is extruded vertically between the two open mold halves, so they can close on the parison and blow pin. Pressurized air flows through
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the blow pin to inflate the parison. This is the most common type of blow molding and is used to manufacture large quantities of relatively simple parts. Injection blow molding The molten plastic is injection molded around a core inside a parison mold to form the hollow parison. When the parison mold opens, both the parison and core are transferred to the blow mold and securely clamped. The core then opens and allows pressurized air to inflate the parison. This is the least commonly used method because of the lower production rate, but is capable of forming more complicated parts with higher accuracy. Injection blow molding is often preferred for small, complex bottles, such as those in medical applications. Stretch blow molding The parison is formed in the same way as injection blow molding. However, once transferred to the blow mold, it is heated and stretched downward by the core before being inflated. This stretching provides greater strength to the plastic. Stretch blow molding is typically used to create parts that must withstand some internal pressure or be very durable, such as soda bottles.
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1
A Balloon of Material is Injected Between Mold Halves
2
Mold Closes Air Forced In Pushes Material Into Mold Cavities
3
Mold Opens Hollow Part Is Removed And Trimmed
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STEPS INVOLVING IN BLOW MOULDING PROCESS PLASTIC GRANULES DROPPING ON TO SCREW THREAD HDPE GRANULES
MOULD
HEAT
FLUID PLASTIC MOVED BY ROTATING SCREW THREAD HDPE GRANULES
HEAT MOULD
HEAT
MOTOR
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FLUID PLASTIC FORCED INTO MOULD HDPE GRANULES
MOULD
HEAT
MOTOR
HEAT
AIR BLOWN INTO MOULD FORCING PLASTIC AGAINST THE SIDES HDPE GRANULES
COMPRESSED AIR HEAT
HEAT
MOTOR
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BIN REMOVED FROM MOULD HDPE GRANULES HEAT
MOULD
HDPE BIN
MOTOR
HEAT
HDPE GRANULES COMPRESSED AIR IN
HEAT
HEAT
MOTOR
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LOCATION UNIT We are going to start the unit at Cherlapally Phase III , besides Indian Oil Corporation, we have taken newly construction building for lease.
PROPOSED NAME OF UNIT & BRAND NAME We would like the name the production unit as
bluejay PACKAGING BRAND NAME
bluejay
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FINANCIAL ANALYSIS
FINANCIAL ASPECTS
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A. Fixed Capital 1. Building (2,300 sft work are a is leased with deposit) : 2,00,000 2. Machinery & Implements Sl.No.
DESCRIPTION
Nos
RATE ( ` )
AMOUNT IN ( ` )
1.
Blow moulding Machine 3 Ltr.
1
6,44,500.00
6,44,500.00
2.
Blow moulding Machine 500 ml
1
5,17,000.00
5,17,000.00
3.
Scrap Grinder
1
1,19,600.00
1,19,600.00
4.
Air Compressor
1
1,45,128.00
1,45,128.00
5.
Cooler Tower
1
51,660.00
51,660.00
6.
Chiller
1
2,37,145.00
2,37,145.00
7.
Platform Type Weighing Machine
1
15,000.00
15,000.00
8.
Leak Detectors
1
1,97,000.00
1,97,000.00
9.
Set Moulds
15
21,000.00
3,15,000.00
10.
Hopper Loader
1
41,600.00
41,600.00
11.
Vertical Colour Mixer
1
47,840.00
47,840.00
12.
Other Machineries
1,00,000.00
1,00,000.00
Sub Total
24,31,473.00
Packing & Forwarding charges @ 5 % 1,2,3,4,5,6,8,10,11
1,05,823.65
Commissioning @ erection charges @ 5% except item no. 1,2,3,4,5,6,8,10,11
1,05,823.65
Sub Total
26,43,120.03
` 50,000.00
3. Furniture & Office Equipment
Total Fixed Capital Investment Sub Total:
26,43,120.00
Furniture & Office Equipment
50,000.00
Total
26,93,120.03 Say `.27,00,000.00
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A. Working Capital per month 1. Raw materials & Consumables No. MATERIAL 1.
HDPE (HIGH DENSITY POLYETHYLENE) Granules
QUANTITY
UNIT RATE
AMOUNT ( ` )
7 Tones
80,000 per Tone
5,60,000.00
Basis & Presumptions v The production is considered on single shift basis and the working days in a month are 25 and that of per annum is 300. v The Installed Capacity of the unit is 480 kg per shift. HDPE Granules is processed to manufacture Jerry Cans of different shapes and sizes. The time period for achieving fully / envisaged capacity utilization is three years. v Though the unit is run with Blow moulding technology, many types of plastic articles and households items can be manufactured. Initially, Jerry Cans of 250 ml, 500 ml, 1 , 2 Liter capacity would be manufactured in the proposed unit. v The weight 250 ml capacity Jerry Can is 40 grams, 500 ml capacity Jerry can is 50 grams, 1 liter capacity Jerry can is 92 grams, 2 Liter capacity Jerry can is 100 grams. v Wastage in the Raw Materials and process losses has been considered at a rate 2 %. v The salaries and wages for staff and labour have been taken into consideration as per the Minimum Wages Act. v The cost of plant and machinery, Raw materials, selling price of finished products etc. are the prices collected at the time preparation of project report and may vary depending upon location, manufactures, market and other various reasons.
2. Salary & Wages Sl.No. Particulars
Nos.
Salary ( ` )
AMOUNT ( ` )
1.
Machine operator (Skilled)
1
15,000.00
15,000.00
2.
Semi Skilled Worker
1
8,000.00
8,000.00
3.
Helpers
3
5,000.00
15,000.00
4.
Watchman
1
5,000.00
5,000.00
Total
6
43,000.00
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Marketing Expenses Sl.No. Particulars
Nos.
Salary ( ` )
AMOUNT ( ` )
10,000.00
20,000.00
15,000.00
15,000.00
1.
Own employees
2
2.
Commission Agent 5% on there billing
2
3.
Advertising & Publication 6
Total
35,000.00
2.Utilities Sl.No. Description 1.
Units
Electricity
13,440
Rate / Unit 4.13
AMOUNT ( ` ) 55,507.20
Annexure Sl.No.
Machine
Power Load
1.
Blow Moulding Machine 2 Ltr
30 HP
2.
Blow Moulding Machine 500 ml
22 HP
3.
Scrap Grinder
5 HP
4.
Air Compressor
1 HP
5.
Chiller
2 HP
As the machines run intermittent, the connect load of all the machinery and the other lighting, fans etc is 10 HP
4. Other Expenses AMOUNT ( ` )
Sl.No. Description 1.
Rent for Building (2300 sft)
2.
Repair & Maintenance
5,000.00
3.
Stores Consumables
4,000.00
4.
Telephone
2,500.00
5.
Miscellaneous expenses
4,000.00
6.
Insurance
2,500.00
27,600.00
Total
45,600.00
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Packaging & Transportation AMOUNT ( ` )
Sl.No. Description 1.
Packaging
2.
Transportation Total
Total Working Capital AMOUNT ( ` )
Sl.No. Description 1.
Raw Material & Consumables
2.
Salary & Wages
43,000.00
3.
Utility Charges
55,507.00
4.
Other Expenses
45,600.00
5,60,000.00
Total
7,04,107.00
Total Capital Investment AMOUNT ( ` )
Sl.No. Description 1.
Total Fixed Capital
2.
Total Operational cost
27,00,000.00 7,04,107.00 Total
34,04,107.00
Means of Finance 1.
My Contribution (@ 25% on Capital Investment)
2.
Loan From Bank
8,51,026.00 25,53,081.00 Total
34,04,107.00
Cost of production ( per annum) AMOUNT ( ` )
Sl.No. Description 1.
Total working capital
2.
Depreciation @ 10% on Machinery & Equipment
3.
Depreciation @ 15% on Furniture & office equipment
4.
Interest on Total Investment @15%
84,49,284.00 2,43,147.30 7,500.00 5,10,616.00 Total
92,10,547.00
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Sales Realisation ( per Annum) Sl.No. Description
AMOUNT ( ` )
AMOUNT ( ` )
1.
2400 bottle of 100 ml @ 20 gm wt. @ Rs. 2.50
6,000 x 12
72,000.00
2.
2400 bottle of 250 ml @ 40 gm wt. @ Rs. 4.80
11,520 x 12
1,38,240.00
3.
2400 bottle of 500 ml @ 40 gm wt. @ Rs. 6.00
14,400 x 12
1,72,800.00
4.
72,000 bottle of 100 ml @ 40 gm wt. @ Rs. 11.00
7,92,000 x 12
95,04,000.00
Total
98,87,040.00
Less Marketing Expenses @ 2.5 %
2,47,176.00
Net Turnover
96,39,864.00
PROFITABILITY ESTIMATES A. Sales revenue per Annum
: Rs. 96,39,864.00
B. Cost of production per Annum
: Rs. 92,10,547.00
C. Net Profit before Tax (A-B)
: Rs. 4,29,317.00
PROFIT RATIO Net Profit Ratio =
Net Profit per year
x 100
Annual Sales Revenue
=
4,29,317 96,39,864
=
4.5%
x 100
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RATE OF RETURN ON INVESTMENT Rate of Return on investment =
Net Profit per year
x 100 Total Capital Investment 4,29,317
=
x 100
34,04,107.00 =
12.6%
BREAK EVEN ANALYSIS Fixed Cost AMOUNT ( ` )
Sl.No. Description 1.
Rent on Building
2.
Depreciation @ 10% on Machinery & Equipment
3.
Depreciation @ 15% on Furniture & office equipment
4.
Interest on investment @ 15%
5,10,616.00
5.
40% Salary & Wages
2,06,400.00
6.
40% Utility Charges
2,66,433.00
7.
40% Other Expenses except rent
2,18,880.00
27,600.00 2,43,147.30 7,500.00
Total
B.E.P.
=
Fixed Cost
14,80,576.00
x 100
Fixed Cost + Profit
B.E.P.
=
14,80,576 14,80,576 + 4,29,317
=
77.5%
x 100
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Machinery Suppliers 1) M/s AARNA MACHINES PVT. LTD A-4, Gundecha Building, 3 X H.K. Road, Kandivali (W), Mumbai - 400067, Maharashtra, India Phone:91-22-28051466 2) M/s ELGI EQUIPMENT LIMITED Singanallur, Coimbatore - 641 005, India. Tel: 422- 2589555 3) M/s GEM Equipments Limited, S.F. No.103, Avanashi Road, Arasur, Coimbatore, TN 641 407, INDIA Phone: 422- 2360013 4) M/s SARO ENTERPRISES OFFICE & FACTORY: 28, First Reddy Street, Ekkattuthangal, Chennai – 600 032 M: 9884068651 5) M/s Progressive Engineers Mumbai, INDIA. T: +91-22-25796760 / 32944289 /32953422
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Other Blow Moulded Containers
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