DISPOSABLE SYRINGES

INTRODUCTION
Disposable syringes are made of Polypropylene. They are available in the sizes
of 1ml,2 ml, 5 ml,10ml .There is widespread awareness of health consciousness
and there is a need for disposable needle.

MARKET POTENTIAL
The Indian Plastic Industry has taken great strides in its quest for success. The
last few decades have seen it rise to the position of a leading force in the country
with a sizable base. The industry itself is growing at a fast pace and the per
capita consumption of plastics in the country has increased manifold as
compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable
part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its
conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4
million tons by 2010 - 2011.
• India is expected to be the 3rd largest consumer of plastics after US and
china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15
Processing Units 22,000 Nos
Turnover Rs. 25,000 crores
Capital Asset Rs. 47,000 crores
Raw Material produced approx. 4.2 million tones
Raw Material consumed approx. 3.7 million tones
Employment Direct / Indirect 2.5 million
Export value approx. USD 1104 million
Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004
LDPE 281
3000
Linear PE / LLDPE / HDPE 1666
PP 1737 2569
PVC 986 1614
PS 246 402
PET Bottles 45 100
PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65
Polyamide ( 6 & 66) 20 32
PET / PBT Moulding
2 3
Material
Polycarbonate 20 32
Other Thermoplastics 26 40
Thermosets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos
Blow Moulding 5050 Nos
Extrusion 16700 Nos
* Source: Task Force on Petrochemical / Industry
Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the
world average of 17 kg, per capita figures should be viewed in the context of our
large population; sometimes per capita figures are useful only for trend analysis
and not in absolute terms.

INSTALLED CAPACITY
Product No of Capacity Capacity per
working per day annum
hours 300 days per
per day annum
Disposable syringes-2 ml 8 19200 5760000
Disposable syringes-5 ml 8 19200 5760000

PLANT AND MACHINERY

Sl. No Description Qty Rs. in Lakhs
1. Zigma Injection Moulding machine 1 27.00
2. Sterilisation plant ( Etylene oxide) 7.00
3. Blister packaging machine 9.30
4. Automatic packing machine 26.00
5. Scrap grinding machine 0.70
6. Weighing scale 0.60
7. Air compressor 0.60
8. Water pump 0.30
9. Chilling plant 3.00
10. Testing equipment 0.50
11. Electricals 7.00
12. Set of moulds for barrels ( 16 cavity barrel) 5.50
13. Set of moulds for syringes body 16 cavity for 7.50
barrel and 16 cavity for plungers)
Total 95.00

MANUFACURING PROCESS
Raw material polypropylene is fed into injection moulding machine and moulded
in chilled condition to get better clarity.The moulded syringes is then assembled
with needle in auomatic assembly line.the whole assembly is then sterilsed in
sterilization plant using ethylene oxide.The finished syringes are then packedin
blisters with the help of blister packing machine.

RAW MATERIALS
Qty-MTs Rate/MT Value Rs. Lakhs
Polypropylene 82.26 70000 57.58
Needles Nos 11760000 0.15 17.64
TOTAL 75.22
Packing materials 11520000 0.10 11.52

LOCATION LAND AND BUILDING

Built up area-Sq.ft 3500
Rent p.m.-Rs per .5 per sq.ft 17500
Advance-10 months. Rs 175000

UTILITIES
Powers & Fuel
Three phase- KW 30.00
Power charges Rs. lakhs p.a 3.42
Power & fuel 3.42
For process-Litres per day 0
For human consumption-litres/day 200
MANPOWER
Monthly wages Total
Supervisor 1 8000 8000
Skilled 6 5000 30000
Unskilled 12 3000 36000
Accounts Assistant 1 4000 4000
Sales Executive 1 5000 5000
Security 2 2000 4000
sub total 87000
Add benefits 20% 17400
Total per month 104400
TOTAL PER ANNUM-Rs. lakhs 12.53

SCHEDULE OF IMPLEMENTATION
If the financing arrangements are finalized the project can be implemented in
three months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions
Installed capacity
Capacity utilisation
Selling price
Raw materials
Packing materials
Power
Wages and salaries
Repairs and Maintenance
Depreciation
Selling general and
administrative expenses
Year-1 -60%
Year -2 -70%
Year-3 onwards- 80%
2 Ml Rs.1.20
5 Ml Rs. 1.60
As per the details given above
As per details given above
Rs. 3.42 lakh per annum at 100%
Rs. 12.53 lakhs with increase 5% every year.
Rs.0.6 lakh per annum with 10% increase per
annum
Written down value method -15 % on machinery
Rs.30000 per month with 5% increase per
annum.
Interest on Term loan 11% per annum
Interest on working capital 11 % per annum
Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s Ossberger - Tubbinen Fabric-Abt, Kunts Heffmachinen 8832,Weissen,
BURG/BAZERNM, P. O. Box 425, West Germany.
2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.
3. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Siakinaka,
Andhari East, Mumbai – 500 072.
4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,
Ahmedabad – 382415,
5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,
Faridabad – 121005.
6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate,
Phase 1 Valva, Ahmedabad – 382445
7. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore- 560 032.
8. M/s Starline Engineering Services, Ideal Indl. Estate, S. Bapat Marg,
Bombay-400 013.
9. M/s Plastopack & Co.,15, Sashibushan Basak Lane, Calcutta-700 036.
10. M/s R & K Enterprises, 829, GIDC, Makarpura, Baroda-390 010.
11. M/s Niranjan Plastics,19/7, Botwala Building, Mahim, Bombay-400 016.
12. M/s Klockner Windsor (I) Ltd.,U-6, U-2 Road,Wage Industrial Estate,
Bombay-400 604.
13. M/s Brimco Plastic Machinery (P) Ltd., 55, Brimco House, Govt. Indl. Estate,
Bombay-400 067.
LIST OF RAW MATERIAL SUPPLIERS
1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641606.
2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079.
3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.
4. Shri Swastic PlastICS, 57/2, Thirupalli Street – 600 079.
5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.
6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020
7. Sankar Mercantile Agencies, 43 Vysarpadi Industrial Estate,
Chennai – 600 039.
8. Indian Petrochemical Corporation. 89 Santhome High Road,
Chenai – 600 028.
9. PP Industries, 91 Stranhas Road, Ooteri,Chennai – 600 012.
10. Haldie Petrochemicals, 41 UN Road, T.nagar, Chennai 600 017.
11. V.B.SREE GanpathyColourCompany, 63, Devaraja Mudali Street, 2nd Floor,
Chennai – 600 003.
12. Prayag Polytech Pvt. LTd. 2468, Prayag House, Nalwa Street, Pahar Ganj,
New Delhi – 110 055.
FINANCIAL ASPECTS

1. COST OF PROJECT
[Rs.lakhs]

Land & Building (Advance) 1.75

Plant & Machinery 95.00
Other Misc. assets 0.50
Pre-Operative expenses 2.00
Margin for WC 2.31
101.56

2. MEANS OF FINANCE

Capital 30.31
Term Loan 71.25
101.56

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-No of pieces

2 ml 5760000 5760000 5760000 5760000 5760000
5 ml 5760000 5760000 5760000 5760000 5760000
Utilisation 60% 70% 80% 80% 80%
Production/Sales-No of pieces
2 ml 3456000 4032000 4608000 4608000 4608000
5 ml 3456000 4032000 4608000 4608000 4608000

Selling Price-Rs.per piece.

2 ml 1.20 1.20 1.20 1.20 1.20
5 ml 1.60 1.60 1.60 1.60 1.60

Sales Value (Rs.lakhs) 96.77 112.90 129.02 129.02 129.02

Raw Materials 45.13 52.66 60.18 60.18 60.18
Packing Materials 6.91 8.06 9.22 9.22 9.22
Power & fuel 2.05 2.39 2.74 2.74 2.74
Wages & Salaries 12.53 13.15 13.81 14.50 15.23
Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88
Depreciation 14.25 12.11 10.30 8.75 7.44
Cost of Production 81.47 89.03 96.98 96.19 95.69
Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38
Interest on Term Loan 7.84 6.86 4.90 2.94 0.98
Interest on Working Capital 0.93 0.93 0.93 0.93 0.93
Total 93.84 100.60 106.78 104.23 101.98

Profit Before Tax 2.93 12.29 22.25 24.79 27.05

Provision for tax 0.99 4.14 7.49 8.35 9.10
Profit After Tax 1.94 8.15 14.76 16.44 17.95
Add: Depreciation 14.25 12.11 10.30 8.75 7.44
Cash Accruals 16.19 20.27 25.05 25.19 25.38

Repayment of Term loan 0.00 17.81 17.81 17.81 17.82

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.88 25% 0.47 1.41

Consumables 2.00 1.15 25% 0.29 0.86
Finished goods 0.50 3.39 25% 0.85 2.54
Debtors 0.50 4.03 10% 0.40 3.63
Expenses 1.00 0.30 100% 0.30 0.00
10.75 2.31 8.44

6. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax = 14.76 11%

Sales 129.02
 Profit before Interest and Tax = 28.08 26%
Total Investment 110.00

Profit after Tax = 14.76 49%

Promoters Capital 30.31

7. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]
Wages & Salaries 13.81
Repairs & Maintenance 0.73
Depreciation 10.30
Admin. & General expenses 3.97
Interest on TL 4.90
33.71

Profit Before Tax (P) 22.25

BEL = FC x 100 = 33.71 x 80 x 100

FC +P 55.95 100

48% of installed capacity