HDPE Blow Moulding Project Report

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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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