R.R PLAST EXTRUSION PVT.LTD.

MUMBAI PROJECT PROFILE(RRSL 75 (650) /CAM TFM 5525- 2)

PRODUCT - Plastic Disposable Cups and Glasses INTRODUCTION

The Plastic Industries in India plays a very important and key role in Industrialization. A wide spectrum of Plastic Articles manufactured by this Industries have touched the life of every Indian in many ways. Now we have entered into another era of Plastic consumer goods, which is continuously replacing the traditional items.

Disposable cups, glasses, plates and other plastic packing containers are used in daily life. In addition to that, these are largely used at hournies, parties and other functions also.

The use of Disposable containers is increasing day by day because of better hygienic conditions, Low cost, easy usability and impressive appearance .

Disposable cups and glasses are largely used for Tea, coffee, juices and other milk-products.
MARKET OUT-LOOK

With rapid urbanization in recent years and growth in consumerism, a study growth is taking place in the Indian consumer products market. By the end of 10th plan period urban population will cross 400 millions, this will lead to further in continuous growth in consumer products in future.

As far as the question of Cups and Glasses are concerned, it has gained great importance because of many reasons. The Disposable cups and glasses are mostly used at Railway stations, moving restaurants, travels and Sports-Centre.
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With increasing urbanizations and sifting thrust of Society For time oriented has increased the use of Disposable Containers. In addition to that the Disposable containers are also used In packaging of Dairy and Food products which has a very bright future and steady growth.
MANUFACTURING The basic material for thermoforming is sheet in rolls and PROCESS therefore, the first process of manufacturing is Extrusion

where the granules mixed with master batch of required colour are extruded into sheet in roll form. The sheets are extruded in various thickness and width to match with the product to be thermoformed. The extrusion of P.P. is to be done with minimum orientation. The sheet rolls are then fed into thermoforming station, where it is to be softened at the required temperature with infra red heaters and then with the help of dies and moulds, air pressure, pre-forming plug, the sheet is Thermoformed into desired shape of containers, and punched out on station. The formed containers are separated here and the punched web (sheet) in rolls are taken to grinder machine where it is converted into Flakes and refilled into the Extruder along with the virgin granules. The containers after Thermoforming are checked, counted and pocked on polythene sleeves and then in corrugated boxes and made ready for despatch.
SAILENT FEATURES (a)

Thermoformed containers being the lightest packing materials save packing cost and freight. Cold as well as hot drinks can be served easily. Thermoformed containers can be of various shapes and sizes To cater to the demand of a cross-section of the food, catering and dairy industries.

(b)
USES

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Page 3 RAW MATERIAL & CHEMISTRY

Raw material for the Disposable containers are either High impact polystyrene (HIPS or PP) and colouring masterbatch granules. Polypropylene is a thermoplastic polymer with good resistance to chemicals and mineral acids and having high impact strength and good toughness and very easy in processing. It has gained wide acceptance in application ranging house-hold items and food-packaging. Masterbatch consists of 80%pigments and 20% polypropylene. Polypropylene is manufactured by dissolving an Unsaturated rubber in polypropylene monomer and polymerizing the monomer in a solution or mass-suspension process. The rubber generally polybutadiene is dispersed on the form of discrete particles and then the polymerization is taking place, which gives the strength to the polymer.

What is PP? Polypropylene (PP) is a long chain polymer made from Propylene (C3) monomer
Propylene Monomer

Heat, Pressure

C3
Catalyst

PP

CH2 = CH CH3 Polypropylene Polymer

Polymerization Process

CH2-CH-CH2-CH CH3 CH3 x

FLOW CHART ECONOMICS OF THERMOFORMING

Procurement of Raw Material Raw Material Inventory / Stock

Material Quality Assurance Computer Inventory Control (RM)

Material Transfer to Work Station/ Extruder

Inventory Control Thermoforming

Sheet/ Roll Stock

Forming Inspection Printing Final Product Inspection Packaging, Labeling Scrap Transfer To Warehouse

Scrap Recovery Grinding/ Identification Inventory Control (FP)

Finished Product Transfer To Warehouse

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INSTALLED PRODUCTION CAPACITY

RATED CAPACITY OF THERMOFORMING MACHINES

Stroke 30 Strokes / mints Avg.Stroke 26 Strokes / mints Cavity 12 Cavity Mould Per day Production/ Machine - 26 X 12 X60 X22 4, 11, 840 pcs / day Considering the average weight - 1.65 gm/ pc For all the products = 4, 11, 840 X 1.65 gm/ pc = 663.00 Kgs/ day + 2.5% packing scrap(16 kgs)

THERMOFORMING: Selected for two machines CAPACITY Monthly Thermoforming production = 663 X 2 =1326.0 kgs

= 1326 kgs X 26/ Month = 34.0 ton / Month

EXTRUSION CAPACITY : Working hrs per shift

No. of shift per day Working hrs per day No. of Extruders No. of working days Machines rated Capacity per hours Monthly Extrusion Capacity

- 7.33 hrs -3 - 22 hrs -1 - 26 days - 130 kgs / hrs - 22 X 130 X 26 = 68,640 Kgs/

Month
__________
PLANT ECONOMICS: Installed plant capacity

No. of Working days

LAND & BUILDING:

= 34.0 Mts/ Month = 26 days / Month

Total Land area 4,000 Sq. ft. 4,00,000.00 @ Rs. 100/- P/ Sq. ft. Building 4,000 Sq. ft. 8,00,000.00 @ Rs. 200/P/ Sq. ft. TOTAL 12, 00, 000.00

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PLANT AND MACHINERIES -

The Estimated cost of Plant and Machineries 1 No 2 Nos 3 Nos 1 No 1 No 1 No 1 No 1 No Rs. 28.50 Lacs Rs. 27.00 Rs. 10.00 Rs. 2.75 Rs. 5.50 Rs. 0.50 Rs. 0.40 Rs. 5.50 80.15 LAKHS

1. Sheet-Extruder 75-Mono-Extruder 2. Thermoforming -5525-PP 3. Thermoforming Mould 4. Scrap Grinder 5. Air Compressor-100 CFM 6. Water Cooling Tower-50 TR 7. Air receiver 1m3 8. Chilling Plant -10 TR 9. Electrical system H.T. Lines of 230 KVA 415 V with Electrical Panels Taxes & Duties

Rs. Rs. Rs.

9.75 9.50

99,40,000

OTHER FIXED ASSETS

1. Office Equipment, Furniture 2. Installation Cost for Water, Air, electricity etc. 3. Weighted Scales 4. Tools and tackles 5. Fire Freighting Equipments 6. Pre operative & Preliminary Expenses

Rs.

25, 000.00

Rs. 1, 50, 000.00 Rs. 25, 000.00 Rs. 25, 000.00 Rs. 30, 000.00 Rs. 20, 000.00 Rs. 2, 75, 000.00

FIXED CAPITAL

1. Land and Building 2. Plant and Machinery 3. Other Fixed Assets

Rs. 12, 00, 000.00 Rs. 99,40,000.00 Rs. 2, 75, 000.00 Rs. 1,14,15,000.00
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Page - 6 REQUIREMENT OF PERSONNEL & COST ADMINISTRATIVE STAFF -

1. Plant Manager Shift In-charge Staff add Store Keeper Security Personnel

1 No 1 Nos 1 Nos 2 Nos 5 Nos

Rs. 12, 000. 00 Rs. 6, 000. 00 Rs. 5, 000. 00 Rs. 6, 000. 00 Rs. 29, 000.00

FACTORY PERSONNEL

1. Skilled 2. Semi Skilled 3. Un-Skilled

----

3 Nos 6 Nos 20 Nos 29 Nos

Rs. 30, 000. 00 Rs. 12, 000. 00 Rs. 50, 000. 00 Rs. 92, 000.00 Rs. 1,21,600.00 12,160.00 Rs. 1,33,760.00

(FLOATING LABOUR)

GRAND TOTAL=

-- 34 Nos

Consider Annual Benefit @ 10% to Add to the Staff Total Electrical Power
UTILITIES & OTHER OVERHEADS

Connected Load a) Sheet Plant b) TFM 2NOS c) Air Compressor d) Grinder e) Water Pump f) Lighting g) Water Cooling tower h) Chilling plant

One No. Two Nos. One No. One No. One No. -------One No. One No.

77. 0 KW 86. 0 KW 23.00 KW 11. 25 KW 2. 25 KW 3. 0 KW 3. 75 KW 15.0 KW

221. 0 KW .

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Therefore total connected load = 221. 0 KW (Say) Consider 70% of the total connected load as average consumption per month. Cost of total nos. of Units consumed per month = 160.00 KW (SAY) Considering the rate of Unit as Rs. 6. 00 / Unit. = 160 X 550 = 88,000/- x Rs. 6.00 = Rs. 5, 28,000. 00 / Month 2. Maintenance Spare Parts 3. Telephone & Postage 4. Stationery 5. Conveyance & Transportation 6. Miscellaneous ----------4,500. 00 / 3,000. 00 / 3,000. 00 / 5,000. 00 / 5,000. 00 /

Total: - 5,48,500.00 / Month

RAW MATERIAL REQUIREMENT

As total plant capacity is 34. 0 Mts / Month , the raw Material requirement = 34000 Kgs. / month. Present Rate is @ Rs. 100. 00 / Kg Cost of total Raw Material ------ --Rs. 34,00,000. 00 / Month Packing material a) P P Film b) Packing Box c) BOPP Tape d) Strap & Clip. Considering average rate of Rs. 6. 00 / Kg for the total production of 34 M.Tons ----Rs. 2, 04, 000.00 / Month
TOTAL WORKING CAPITAL / MONTH

1) Raw Material 2) Packing material 3) Salary and Wages 4) Utilities and Overheads

Rs. 34,00,000. 00 Rs. 2, 04, 000. 00 Rs. 1,33,760.00 Rs. 5,48,500.00 Rs. 42, 86, 260. 00

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Page - 8 TOTAL CAPITAL INVESTMENT

1) Fixed Capital 2) Working Capital

Rs. 1,14,15, 000. 00 Rs. 42,86,260. 00 Rs. 1, 57,01,260. 00

PROFIT & LOSS ACCOUNT

1. Cost of Production per Month a) Cost of Raw Materials b) Cost of Packing Materials c) Salary & Wages d) Utilities and Overheads e) Interest @ 12% on TCI f) Considering the depreciation @ 15% on Fixed Assets Rs. 34,00,000. 00 Rs. 2,04, 000. 00 Rs. 1,33,760.00 Rs. 5,48,500.00 Rs. 1,57,012. 00 Rs. 1, 42, 687. 00

Rs. 45,85, 959. 00

TURN OVER PER MONTH:

By Sale of 34. 0 Mts Glasses and Cups At average rate of Rs. 1, 65, 000. 00 / Mts At the present market rate total sale Profit = Receipts Cost of Production = 56,10, 000. 00- 45,85,959. 00 = RS. 10, 24, 041. 00 / MONTH
PROFIT(%) / MONTH :-

Rs. 56,10, 000. 00/ Month

Profit / Sales X 100 = 10,24,041. 00/ 56,10,000. 00X 100 = 18.25%

** The Profitability of the Plant will be more Viable if production is matched with marketing strategy and demand.
FOR, R.R. PLAST- MUMBAI