MANUFATURE OF PET BOTTLE

A

PROJECT PROFILE

ON

2020 - 2021

Prepared By:

Ministry of MSME, Govt. of India

34, Industrial Estate, Nunhai

Agra-282006, (U.P.)

Ph. 2280879, Fax 0562-2280882

E-Mail:- dcdi[email protected].in

MANUFATURE OF

PET BOTTLE

A PROJECT PROFILE ON

PET- Bottle

QUALITY STANDARD : The quality design and standards shall

depend upon the performance

requirement of individual Bottle

PRODUCTION CAPACITY :

QUANTITY(Nos) : 8,10,00,000

VALUE : Rs. 21,0600000=00

MONTH AND YEAR OF PREPARATION: : June 2020

PREPARED BY : MSME –Development Institute

Agra

I Introduction: -

Polyethylene terephthalate (PET) resin is known for their excellent combination of

properties such as Mechanical, thermal, chemical resistance as well as dimensional

stability. It has low gas permeability in particular Carbon di oxide. PET is also know

for moisture barrier properties and excellent resistance to alcohol and hydro

carbon. PET is approved as safe for packaging of foods and beverages. It is an

important commercial polymer having application ranging packaging of Water,

foods, beverages, sanitizer, Liquor, Oil, Juice, Soda, Pharma, shampoos and

Cosmetic products . PET can be moulded into containers and Bottle of different

sizes and shapes.

II Market Potential:-

The demand of PET Bottle is likely to increase due to its advantages over other

packing material like transparent, light weight, flexibility, corrosion and chemical

resistance and easy to transport.

III. Basis & Presumption:-

1 The Project Profile has been prepared on the basis of Single Shift of 8-

hrs. a day and 25-working days in a month at 75% efficiency.

2 It is presumed that Ist year, the capacity utilization will be 75% followed

by 100 % in the next year .

3 Interest rate for the fixed and working capital has been taken @ 10% on

an average whether financed by the Bankers or Financial Institutional.

4 The margin money required is minimum (30% of the total capital

investment).

5 The rental value for the accommodation of office, workshop and other

covered area has been taken @100/- per sq. mtr.

6 The rate quoted in respect of machinery, equipment and raw materials

are those prevailing at the time of preparation of the Project Profile and

are likely to vary from place to place and suppliers to suppliers. When a

tailor made project profile is prepared, necessary changes are to be made.

7 The pay back period may be 5-years after the initial gestation period.

8 The gestation period in implementation of the project may be to the

tune of 4 to 6 months which includes making all arrangements, completion

of all formalities, market surveys and tie-ups etc. Once all the above

arrangements are made and quality/standards achieved the 100% project

capacity may be achieved at the end of two years.

IV. Implementation Schedule: -

The implementation of the project includes various jobs/exercises such as market

surveys and tie-ups, preparation of project report, selection of site, registration,

financing of project, procurement of machinery and raw materials etc.,

recruitment of staff, erection/ commissioning of machines, trial production and

commercial production etc.

V. Process Details:-

A pre-form parison is placed to a blow molding cavity. The parison is stretched

biaxially during blow molding to orient and align the molecules. This orientation

improves the gas barrier, stiffness, clarity and impact strength of the Bottle. As a

result, Bottle can be reduced in weight.

Production (Target & Value):-

QUANTITY : 8,10,00,000

VALUE : Rs. 21,0600000=00

Quality Control & Standards:- The quality design and standards shall

depend upon the performance

requirement of individual Bottle

1. Power Requirement: - 70 K.W.

2. Energy Conservation:-

The following steps may be taken for the conservation of energy.

2 Lay out of the unit should be in such a way in that no back tracking of material is

there.

3 All electric switches may be kept off, when not required.

5 LED may be used for energy saving.

6 As far as possible Solar Energy and day light will be used .

7. Pollution Control:-

1. Minimum height of shed will be maintained with exhaust fans should be

installed for removing decongestion proper ventilation etc.

VI. Financial Aspects:-

1. Fixed Capital:-

Land and Building (rented)

On Rent @ Rs.100/-Sq. meter

CoveredArea250Sq.meter Rs.25000=00

2. Machinery and equipment:-

--------------------------------------------------------------------------------------------------------------

S.No. Description HP/KW Ind/Imp. Qty. Value

(

(a) Production Unit

Name of machine with specification

1. Three Cavity Fully Automatic PET Blow Moulding 9 KW IND 01 21,25,000=00

Machine With Air Recovery ,Pre-form storage Hopper,

Auto feeder and bottle carrying conveyor

A) Blowing capacity-50ml to 1000ml

B) Neak Dia-25mmto28mm

2 Air Compressor Set- 01

a) 35 HP, 9 Bar Screw Compressor

IND 01 11,75,000=00

b) 15 HP, 32 Bar Booster Compressor with 500 ltrs

Tank IND 01

c) 1000 Ltrs Low Pressure air Reservoir

IND 01

d) 150 CFM High Pressure air Dryer

IND 01

e) 150 CFM High Pressure Pre Filter

IND 01

f) 150 CFM High Pressure oil Filter

IND 01

g) 60 CFM Low Pressure air Dryer

IND 01

h) 60 CFM Low Pressure Pre Filter

IND 01

i) 60 CFM Low Pressure Oil Filter

IND 01

3. Air Cooled Water Chiller-3TR IND 01 1,25,000=00

4. Cooling Tower 15 TR IND 01 80,000=00

Total 3505000=00

5 Cost of Mould (Different Sizes and Shape) IND 400000=00

Total 3905000=00

6 GST @18% 702900=00

Total 4607900=00

(b) Pollution Control Equipment, if required: 50000=00

(c) Energy Conservation Facilities/ Equipment, if used: 50000=00

(d) Electrification & Installation Charges @ 10% 477790=00

(e) Cost of Office Equipment/ Working Table etc. 100000=00

Total Cost of Machinery & Equipments 5285690=00

a + b + c + d + e

3. Pre-Operative Expenses:- 10,000=00

Total Fixed Capital 5385690=00

VII. Working Capital (Per month)

Staff and Labour (per month):-

(1 ) Personnel

S.No. Description No. Salary @ Total Value (Rs.)

(a) Administrative & Supervisory

i) Supervisor/ Foreman 01 20,000 20000=00

4000=00

ii) Accountant cum clerk 01 15000 15000=00

3000=00

iii) Peon 01 10000 10000=00

(b) Technical Skilled & Unskilled

Iv)Skilled Worker 02 13000 26000=00

6000=00

v)Semi Skilled Worker 02 12000 24000=00

4800=00

vi)Helper 02 10000 20000=00

Total 1,15,000=00

Perquisites @ 15 % 17250

=00

Total 1,32250=00

(2) Raw Material (per month):-

S.No. Description with specification Qty. Rate Value (Rs.)

1 Pre-Form (Various weigh) 135MT 1,20,000/MT 1,62,00,000=00

(3) Utility (per month):-

Electricity 9000@9KW 81,000=00

Water LS 1000=00

Total 82000=00

(4) Other Expenditure (per month)

1. Rent 25000=00

2. Postage & Stationary 2000=00

3. Advertisement 25000=00

4. Repairing & Maintance 17500=00

5. Telephone 2000=00

6. Transportation 20000=00

7. Consumable 5000=00

8. Sales expenses 5000=00

9. Insurance 10000=00

10 Misc. Expenses 20000=00

Total 1,31,500=00

II. Total Recurring Expenditure (per month):-

1) Salary & Wages 1,32,250=00

2) Raw Material 1,62,00,000=00

3) Utilities 82,000=00

4) Other Contingent Expenses 1,31,500=00

Total: 16545750=00

IX. Working Capital for three months:- 49637250=00

X. Total Capital Investment:-

Fixed capital: 5385690=00

Working capital for 3 months: 49637250=00

Total 55022940=00

XI. MACHINERY UTILIZATION:-

It is expected that during first year machine utilization will be 75% and

during second year 100% .

XII. FINANCIAL ANALYSIS

1 Cost of Production (per annum):-

1. Total Recurring Cost per year 198549000=00

2. Depreciation on Machinery & Equipment @ 10% 4,77,790=00

3. Depreciation on Furniture @25% 25,000=00

4. Interest on Total Capital Investment @ 10% 4287294=00

Total: 203339084 =00

XIV. Turn Over per annum:-

S.No. Description Qty. Rate Value (Rs.)

1 PET- Bottle 8,10,00,000 2.60 21,0600000=00

XV. Net Profit per annum before Income Tax :- 7,260,916=00

XVI. Net Profit Ratio:-

Net profit x 100 % 3.4%

Turn over

XVII. Rate of Return:-

Net profit x 100 13.1

%

Total investment

XIV. BREAK EVEN ANALYSIS: -

(1) Fixed Cost (per annum)

A Total Depreciation 5,02,790=00

(on m/c. & equipment, dyies, tools, furniture):

B Rent: 3,00,000=00

C Interest on borrowing :( Total Investment) 4287294=00

D Insurance 120000=00

E 40% of salary: 634800=0

F 40% of other contingent expenses: 463200=0

(Excluding rent & insurance)

Total 6308084=00

XX. Break Even Point = Fixed Cost x 100

Fixed cost + profit

=46.4%

XXI . LIST OF MACHINERY & RAW MATERIAL SUPPLIERS

1. M/S Boolani Engineering Corporation

Prabhadevi Indl Estate , 402,

Veer Savarkar Marg,Mumbai-400025

2 M/S Dunamis Machine

4/516C,Edapalayam,Upparapalayam Road,

alamathi Red Hills, Chennai-600052

3. M/S Pet Plat India

18,Astal Road, Bhakri Pali Road,,Bhakri,

Faridabad ,Haryana-121001

4. M/S Shiva Hydrolic,A-82, Gali No-4,sidhart enclave,Jain Road,

Uttam Nagar,Delhi-1100

RAW MATERIAL

1.M/S Chemco, Chemco House,6

th

Floor, D.Sukhadwala Road

Fort, Mumbai

2. M/S Premier flexi Plast ,C-608,DSIDC Indl. Area, Narela, Delhi

3. M/S Nirmal Pet,467,Indl Area, Mohali, Punjab

4. M/S Mittal Plastic Products,G-8,Bawana Indl. Area,Sector-3,Bawana

New Delhi-110039