Project report for plastic container

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Introduction

The global plastics industry is observing a continuous shift of production bases to low-cost Asian countries. With increasing foreign investment and rise in the number of new manufacturing establishments in the region, Asia has become the largest and the fastest growing market for plastics in the world. In particular, China and India offer enormous growth opportunities due to expanding production activities in the countries. Packaging sector is the largest application sector for the plastic industry, representing almost 60.0% of the total plastics demand .plastic consumption for packaging in India is expected to reach 10.0 million tons by 2020. The FMCG sector compiled with the rise in capital investment pose as the key growth drivers for the packaging industry in the country. The demand for packaging of these products has to lead the development of the plastic packaging industry in the country. Among the vast family of plastics, Polyethylene Terephthalate, popularly known as PET, is expected to grow the fastest at 11.0% annually. Majority of the PET available in India is utilized in the production of bottles. In recent years, PET bottles have inundated the Indian market, with an annual growth rate in consumption exceeding 20.0%. PET is constantly replacing conventional bottle raw materials such as glass and metal. Apart from being lightweight, PET offers several other advantages such as pack weight reduction, ease of handling and longer shelf life of packaged goods. Furthermore, PET bottles are persuasive in terms of sustainability, technical performance, and aesthetics. PET packaging is increasingly being used in healthcare and personal care products, packaged foods and beverages markets. Advancements in packaging material science and mounting demand for product protection and stability are further driving demand for PET bottles in India. The global PET bottle market reached a volume of more than 17 Million Tons in 2018, registering a CAGR of more than 2.3% during 2011-2018. The market is further projected to reach a volume of nearly 19 Million Tons by 2024, at a CAGR of nearly 2.1% during 2019-2024. Polyethylene terephthalate (PET) refers to a thermoplastic polymer resin of the polyester family which is widely used for manufacturing plastic bottles. So the future of the industry is so promising and the demand is increasing day by day.

 

Product / Services & process

PET jar, PET bottles were the products of the firm. Polyethylene terephthalate (sometimes written poly(ethylene terephthalate)), commonly abbreviated PET, PETE, or the obsolete PETP or PET-P, is the most common thermoplastic polymer resin of the polyester family and is used in fibers for clothing, containers for liquids and foods, thermoforming for manufacturing. MAA CHAMUNDA PET POLYMERS are planning to produce PET jars of different size and colors.

 

 

Raw materials / Consumables

Plastic Dana & Chemicals were the main raw materials. Plastic Dana Fresh & Semi-Natural/Color are accurately formulated by using quality ingredients and does not comprise any harmful chemicals. These are made in various mgs according to the specifications.

PET is a thermoplastic polymer that can be either opaque or transparent, depending on the exact material composition. As with most plastics, PET is produced from petroleum hydrocarbons, through a reaction between ethylene glycol and terephthalic acid. To produce plastic bottles, the PET is first polymerized to create long molecular chains.  Polymerization itself can be a complicated process, and accounts for many of the inconsistencies between one batch of manufactured PET and another. Typically, two kinds of impurities are produced during polymerization: diethylene glycol and acetaldehyde. Although diethylene glycol is generally not produced in high-enough amounts to affect PET, acetaldehyde can not only be produced during polymerization, but also during the bottle manufacturing process. A large amount of acetaldehyde in PET used for bottle manufacturing can give the beverage inside an odd taste.

 

Market potential & Strategy

The global PET bottle market reached a volume of more than 17 Million Tons in 2018, registering a CAGR of more than 2.3% during 2011-2018. The market is further projected to reach a volume of nearly 19 Million Tons by 2024, at a CAGR of nearly 2.1% during 2019-2024. Polyethylene terephthalate (PET) refers to a thermoplastic polymer resin of the polyester family which is widely used for manufacturing plastic bottles. In comparison with PP, HDPE and PVC bottles, PET bottles are more durable, transparent, lightweight, non-reactive, cost-effective and thermally stable. Moreover, they are environment-friendly and can be recycled repeatedly which further reduces their manufacturing cost. Primarily used in the packaging of drinking water and beverages, PET bottles are also gaining prominence as a packaging solution for salad dressings, household cleaners, medicines, dish detergents and mouthwashes.The rising trend of westernization, inflating disposable incomes and altering food patterns of consumers have increased the demand for bottled beverages, particularly in developing countries like India and China. Additionally, hectic lifestyles have enabled consumers to opt for on-the-go beverages.Due to their flexibility, PET bottles can be molded into numerous shapes to improve their appearance and utility. For brand differentiation, manufacturers are focusing on unique packaging and different-sized packs which are spurring the demand for PET bottles with customized shapes, colors and designsAdvancements in technology have created a positive outlook for the PET bottle market. For instance, manufacturers have introduced a plasma-based coating which makes PET bottles more impervious in nature. Apart from this, they have also started utilizing silver to increase the product shelf life.Currently, PET bottles are used for packaged water as they are considered safer and healthier for maintaining the quality of water. Moreover, on account of growing environmental concerns, various beverage companies are improving their packaging solutions by adopting the latest PET bottle manufacturing techniques.

 

PROJECT REPORT

plastic container

Address

Introduction

The global plastics industry is observing a continuous shift of production bases to low-cost Asian countries. With increasing foreign investment and rise in the number of new manufacturing establishments in the region, Asia has become the largest and the fastest growing market for plastics in the world. In particular, China and India offer enormous growth opportunities due to expanding production activities in the countries. Packaging sector is the largest application sector for the plastic industry, representing almost 60.0% of the total plastics demand .plastic consumption for packaging in India is expected to reach 10.0 million tons by 2020. The FMCG sector compiled with the rise in capital investment pose as the key growth drivers for the packaging industry in the country. The demand for packaging of these products has to lead the development of the plastic packaging industry in the country. Among the vast family of plastics, Polyethylene Terephthalate, popularly known as PET, is expected to grow the fastest at 11.0% annually. Majority of the PET available in India is utilized in the production of bottles. In recent years, PET bottles have inundated the Indian market, with an annual growth rate in consumption exceeding 20.0%. PET is constantly replacing conventional bottle raw materials such as glass and metal. Apart from being lightweight, PET offers several other advantages such as pack weight reduction, ease of handling and longer shelf life of packaged goods. Furthermore, PET bottles are persuasive in terms of sustainability, technical performance, and aesthetics. PET packaging is increasingly being used in healthcare and personal care products, packaged foods and beverages markets. Advancements in packaging material science and mounting demand for product protection and stability are further driving demand for PET bottles in India. The global PET bottle market reached a volume of more than 17 Million Tons in 2018, registering a CAGR of more than 2.3% during 2011-2018. The market is further projected to reach a volume of nearly 19 Million Tons by 2024, at a CAGR of nearly 2.1% during 2019-2024. Polyethylene terephthalate (PET) refers to a thermoplastic polymer resin of the polyester family which is widely used for manufacturing plastic bottles. So the future of the industry is so promising and the demand is increasing day by day.

Product / Services & process

PET jar, PET bottles were the products of the firm. Polyethylene terephthalate (sometimes written poly(ethylene terephthalate)), commonly abbreviated PET, PETE, or the obsolete PETP or PET-P, is the most common thermoplastic polymer resin of the polyester family and is used in fibers for clothing, containers for liquids and foods, thermoforming for manufacturing. MAA CHAMUNDA PET POLYMERS are planning to produce PET jars of different size and colors.

 

Raw materials / Consumables

Plastic Dana & Chemicals were the main raw materials. Plastic Dana Fresh & Semi-Natural/Color are accurately formulated by using quality ingredients and does not comprise any harmful chemicals. These are made in various mgs according to the specifications.

PET is a thermoplastic polymer that can be either opaque or transparent, depending on the exact material composition. As with most plastics, PET is produced from petroleum hydrocarbons, through a reaction between ethylene glycol and terephthalic acid. To produce plastic bottles, the PET is first polymerized to create long molecular chains.  Polymerization itself can be a complicated process, and accounts for many of the inconsistencies between one batch of manufactured PET and another. Typically, two kinds of impurities are produced during polymerization: diethylene glycol and acetaldehyde. Although diethylene glycol is generally not produced in high-enough amounts to affect PET, acetaldehyde can not only be produced during polymerization, but also during the bottle manufacturing process. A large amount of acetaldehyde in PET used for bottle manufacturing can give the beverage inside an odd taste.

Market potential & Strategy

The global PET bottle market reached a volume of more than 17 Million Tons in 2018, registering a CAGR of more than 2.3% during 2011-2018. The market is further projected to reach a volume of nearly 19 Million Tons by 2024, at a CAGR of nearly 2.1% during 2019-2024. Polyethylene terephthalate (PET) refers to a thermoplastic polymer resin of the polyester family which is widely used for manufacturing plastic bottles. In comparison with PP, HDPE and PVC bottles, PET bottles are more durable, transparent, lightweight, non-reactive, cost-effective and thermally stable. Moreover, they are environment-friendly and can be recycled repeatedly which further reduces their manufacturing cost. Primarily used in the packaging of drinking water and beverages, PET bottles are also gaining prominence as a packaging solution for salad dressings, household cleaners, medicines, dish detergents and mouthwashes.The rising trend of westernization, inflating disposable incomes and altering food patterns of consumers have increased the demand for bottled beverages, particularly in developing countries like India and China. Additionally, hectic lifestyles have enabled consumers to opt for on-the-go beverages.Due to their flexibility, PET bottles can be molded into numerous shapes to improve their appearance and utility. For brand differentiation, manufacturers are focusing on unique packaging and different-sized packs which are spurring the demand for PET bottles with customized shapes, colors and designsAdvancements in technology have created a positive outlook for the PET bottle market. For instance, manufacturers have introduced a plasma-based coating which makes PET bottles more impervious in nature. Apart from this, they have also started utilizing silver to increase the product shelf life.Currently, PET bottles are used for packaged water as they are considered safer and healthier for maintaining the quality of water. Moreover, on account of growing environmental concerns, various beverage companies are improving their packaging solutions by adopting the latest PET bottle manufacturing techniques.

Project at a glance

Name & Address of Unit

Plastic Bottle manufacturing

Address

Details of unit
Email : youremail@gmail.com
Phone : 0000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 00000000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Mold Performs die *******
2 2HP Motor *******
3 Culeg Tower *******
4 Pet/Jar Droper Machine *******
5 Pet/Jar Driyer Machine *******
6 Pet Priform Injection Moulding M/C *******
7 Furniture *******
8 Preliminary expenses *******
9 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Plastic Pet/Jar Big/Normal Size ******* X 900 Kilogram *******
2 Plastic Pet set in alternative Size/Gift Jar/House Hold ******* X 1500 Kilogram *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Salary *******
3 Repairs & Maintanance *******
4 Electricity *******
5 Stationary *******
6 Raw materials *******
7 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Mold Performs die ******* 4 ******* *******
2 2HP Motor ******* 3 ******* *******
3 Culeg Tower ******* 2 ******* *******
4 Pet/Jar Droper Machine ******* 1 ******* *******
5 Pet/Jar Driyer Machine ******* 1 ******* *******
6 Pet Priform Injection Moulding M/C ******* 1 ******* *******
7 Furniture ******* 1 ******* *******
8 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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