down stream project profiles regarding plastics

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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries Mott MacDonaldOn Assam Gas Cracker Project NEDFiFinal Report- Volume II (Project Profiles)

253791/01/A - 5 October 2009/\\INNOIDFP01\Projects$\DMC\Projects\253791- Assam Cracker Downstream Units\Reports\NEDFi Final Cracker Report\Final Report As Submitted\NEDFiReport Volume-II (Project Profiles-Final).doc/IA

Study and Action Plan

for PromotingDownstream PlasticProcessing & AlliedIndustries

on the Assam Gas

Cracker ProjectFinal Report- Volume II(Project Profiles)

Issue and Revision Record

Rev Date Originator Checker Approver Description

018thMay

2009

IramAbdullah,Archana

Chandrikadevi

AnisurRahman,

Iram Abdullah

ShomaMajumdar

Draft Report- Volume II

Project Profiles

025thOctober

2009

IramAbdullah,Archana

Chandrikadevi

AnisurRahman, Iram

Abdullah

ShomaMajumdar Final Report- Volume II

Project Profiles


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253791/01/A - 5 October 2009/\\INNOIDFP01\Projects$\DMC\Projects\253791- Assam Cracker Downstream Units\Reports\NEDFi Final Cracker Report\Final Report As Submitted\NEDFiReport Volume-II (Project Profiles-Final).doc/IA

This document has been prepared for the titled project or named part thereof and should not be relied upon or used for anyother project without an independent check being carried out as to its suitability and prior written authority of MottMacDonald being obtained. Mott MacDonald accepts no responsibility or liability for the consequence of this documentbeing used for a purpose other than the purposes for which it was commissioned. Any person using or relying on thedocument for such other purpose agrees, and will by such use or reliance be taken to confirm his agreement to indemnifyMott MacDonald for all loss or damage resulting therefrom. Mott MacDonald accepts no responsibility or liability for thisdocument to any party other than the person by whom it was commissioned.

To the extent that this report is based on information supplied by other parties, Mott MacDonald accepts no liability for anyloss or damage suffered by the client, whether contractual or tortious, stemming from any conclusions based on datasupplied by parties other than Mott MacDonald and used by Mott MacDonald in preparing this report.


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List of Contents Page

Chapters and Appendices

1 Project Profiles 1

2 Pond/Canal Lining 3

3 Disposable Syringes 11

4 Drip Irrigation System 18

5 Geo-Textiles 24

6 Greenhouse Film 33

7 HDPE Pipes 39

8 Moulded Furniture 46

9 Pre-fill PP Polymer 52

10 Toys 58

11 Woven Sacks 64

12 HDPE Mug, Bucket, Containers and PP Comb 70

13 HDPE Small Bottles and Containers 77

14 HDPE Mosquito Nets 83

15 LLDPE Bio-Degradable Sheets/Carry Bags 88

16 PP Blow Moulded Plastic Products 94

17 Moulded Luggage 100

18 Synthetic Wood 105

19 LLDPE Multi-layer Film 111

20 Water Tanks 117

21 Plastic Crates 123

22 Tarpaulins and Covers 130

23 Bi-Axially Oriented Polypropylene (BOPP) Films 138


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24 Leno Bags 145

25 Ropes 150

26 PP Disposable Plastic Cups/ Glasses 156


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1 Project Profiles

As detailed in Volume I of the report, as part of our Scope of Work for the Study and Action Plan for

Promoting Downstream Plastic Processing and Allied Industries, we have prepared the Product

Profiles for the following products:

1. Pond/Canal Lining

2. Disposable Syringes

3. Drip Irrigation Systems

4. Geo-Textiles

5. Greenhouse Film

6. HDPE Pipes

7. Moulded Furniture

8. Pre-fill PP Polymer

9. Toys

10.Woven Sacks

11.HDPE Plastic Combs, Buckets, Mugs etc.

12.HDPE Small Bottles, Small Containers

13.HDPE Mosquito Nets

14.LLDPE Biodegradable Sheets and Carry Bags

15.PP Blow Moulded Plastic Products

16.Moulded Luggage

17.Synthetic Wood

18.LLDPE Multi-layer Film

19.Water tanks

20.Plastic Crates

21.Tarpaulins and Covers

22.BOPP Films


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23.Leno Bags

24.Ropes

25.PP Disposable Plastic Cups/Glasses

The subsequent sections of this report cover the project profiles of the above listed products.


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2 Pond/Canal Lining

2.1 Introduction

Geo-synthetics is the collective term applied to thin, flexible, sheets of material incorporated in or

within soil to enhance its engineering performance.Applications of geo-synthetics mainly fall within

the domain of civil engineering applications.Geo-synthetics as a separate market segment have been

developed and being used at an increasing pace for a greater number of geotechnical applications. The

specific families of geo-synthetics are focused on different categories, such as, geo-textiles, geo-grid,

geo-nets, geo-membranes, geo-synthetic clay liners, geo-pipe, geo-composites and others.

Geo-membranes are a type of geo-synthetic material. They are impermeable membranes used widely

as cut-offs and liners. Until recent years, geo-membranes were used mostly as canal and pond liners.

Geo-membranes are made of various materials. Some common geo-membrane materials are Linear

Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC),Polyurea and Polypropylene (PP). Another type of geo-membrane is bituminous geo-membrane,

which is actually a layered product of glass and bitumen-impregnated non-woven geo-textile.

In addition to UV and chemical resistance, LLDPE lining sheets exhibit a high degree of flexibility.

Greater flexibility provides increased conformance to subsistence and differential settlement. High

puncture elongation properties make LLDPE liners ideal in applications where conformances to sub

grade irregularities increase the possibility of puncture.

2.2 Market Potential

Geo-membranes are used in the lining of raw water reservoirs, effluent/ desalination/sludge plants,

artificial lagoons/lakes, evaporation pond/leaching pond/ash pond, canals/water storage

tanks/swimming pools. Liners can be made out from Linear Low Density Polyethylene (LLDPE)

fabrics.

In India, research institutions are doing a commendable work in promoting technical textiles,

particularly in the Homotech and Meditech fields but a lot remains to be done. Technical textiles have

a great future in India. Technical textiles do not need any special machinery. China is one of the

manufacturers of this machinery and has allotted almost one full Chinese hinterland solely to the

development of machinery for technical textiles. Even today, there are a few units in India especially

those located in Maharashtra, manufacturing technical textiles in various formats. Units in India, bothexisting and those in the pipeline can be assured of sustained demand in various fields going by the

economic activity in India.

The Geo-technical textiles market which includes geo-textiles, geo-membranes and civil engineering

textiles was estimated to be worth Rs. 999 crores in 2005-06 in the country. This market is expected to

grow at about 10% in the coming years.

The Government of India has also extended its support by including technical textile projects under

the Textile Up-gradation Fund Scheme whereby intending units will be assured of both 10% capital

subsidy and a 5% remission in interest rates charged by banks.


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2.3 Plant Capacity

The production basis for a typical unit would be as under:

Working hours/day: 16 (2 shifts)

Working days in a year: 300

Annual Production capacity: 1000 TPA LLDPE Liners

The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,

second and third year and at 100% capacity from fourth year onwards of its operation.

2.4 Process, Plant & Machinery (Details & List of Machinery Suppliers)

Polyethylene resin is pumped directly from storage silos or from totes on the floor to hoppers which

are placed above the extruder.

Hoppers feed resin into the extruder. The resin is heated to the melting point in the extruder barrel. It

is conveyed through the barrel by the rotation of a specially designed screw which, in conjunction with

heating elements along the barrel, provides consistency to produce a molten polymer stream.

The molten material is forced through a screen pack, which act as a final filter for impurities or

contaminants, and up through a die. It extrudes from the circular die as a film tube (bubble), pulled

vertically by a set of nip rollers located at the top of a cooling tower. An IBC (Internal Bubble

Cooling) unit, part of the extruder, maintains consistent bubble diameter.

At the top of the tower the bubble passes through a collapsing frame and is pulled through the niprollers. The material is directed back toward the ground, and continues cooling as it approaches a

winding machine. Before being taken up by the winder, the tube is split and spread to its deployable

width. The winder rolls the finished geo-membrane onto a specially made heavy-duty core.

As the geo-membrane is rolled and cut to length, thickness measurements are made across its full

width and a full roll width sample is taken for QC testing. Tests include density, uni-axial tensile

properties (most significantly break properties), carbon black content and dispersion, Oxidative

Induction Time, and Stress Cracking Resistance. All tests are not be performed on every roll, and each

test is performed at a different frequency. A sample of material is archived for reference purposes.

A QC certificate is prepared for each roll, listing the roll number, the resin lot and all test resultscovering that roll. A copy of the certificate for each roll will be sent to the project engineer or the QA

consultant for each project no later than delivery of the roll to the site.

Each roll will be identified with a label showing the product, the roll number, thickness, and length.

Labels will be placed on the outside of the roll at one end and on the outside or inside of both ends of

the core. This enables the roll to be easily identified when stacked on top of or under others.

The Plant & Machinery required for this project includes Hopper, Multi-Layer Co-extrusion Blown

film plant and Cooling Tower

Following is the list of the plant and machinery suppliers:


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1. SS Mechanical Engineers

WZ-106/56, Rajouri Garden Extn.,

New Delhi-110027

E-MAIL : [email protected]

2. ALMASS INDUSTRIES

324, Functional Industrial Estate,

Patparganj (Near Anand Vihar),

Delhi 110092

3. DYNAMIC ENGINEERS

Plot No. 35/36/37,

Shri Ram Industrial Estate,

Anup Engineering Compound, G.I.D.C.,

Odhav, Ahmedabad - 382415

2.5 Raw Material & Utilities Requirement

The Raw Material required is LLDPE. We have considered 2% wastage of raw material.

Raw Material

Requirement

Total Requirement

(MTPA)

Cost (Rs./MT) Total Cost

(Rs. Lakhs/MT)

LLDPE with 2% wastage 1020 71124 725

Total Raw Material

Cost

725

The main utilities required are water and power. The total utility cost is Rs. 1.21 Lakhs per annum.

2.6 Land & Built-up Area Requirement

The total land required is 5000 sq.m. and the built-up area is 2000 sq.m.

2.7 Manpower Requirement

Staff Nos


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Plant Manager1

Laboratory Manager1

Production Manager

2Accountant

1

Supervisors2

Skilled Workers10

Unskilled Workers10

Security3

Total Manpower Required 30

A margin of 25% has been considered for other benefits for the staff.

2.8 Project Cost/ Fixed Capital Requirement & Means of Finance

Land has not been considered as a part of the project cost because it has been considered to be takenon lease (as applicable in Assam). One time Land Development Charges have been taken as part of theProject Cost. Also, Special Maintenance Charges and an Annual Service Charge have been consideredas part of operating cost. The Total Project Cost is Rs. 335.38 Lakhs as per the table below:

S.No Cost Head Cost (in Rs. Lakhs)

1 Building160.00

2 Machinery50.18

3 Miscellaneous Fixed Assets43.88

4 Preliminary and Pre-Operative Expenses2.00

5 Margin Money for Working Capital 53.83

6 Contingency Expenses15.49

7 Land Development10.00

Total335.38

The means of finance considering Debt-Equity ratio of 2:1 will be:

Means of Finance Rs in lakhs


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Equity111.78

Debt223.60

Total335.38

2.9 Working Capital Requirement

The Total Working Capital Requirement is as under:

Year-1 Year-2 Year-3 Year-4 Year-5

Net WC215.33 246.10 276.86 307.62 307.62

Available Bank Finance161.50 184.57 207.64 230.71 230.71

Margin Money53.83 61.52 69.21 76.90 76.90

2.10 Operating Expenses

The Annual Operating expenses for the first year (70% capacity utilization) are given below:

Particulars Expense(Rs in lakhs)

Utilities0.85

Wages & Salaries 16.74

Interest on term loan33.54

Interest on Bank Finance for Working Capital24.23

Raw Material507.83

Depreciation12.77

Maintenance and Service Charges1.15

Total597.10

2.11 Profitability Estimates

(Rs. In Lakhs)

YEARS. NO. PARTICULARS

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5


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Production/Sales

Installed Capacity1000 1000 1000 1000 1000

Capacity Utilization

70% 80% 90% 100% 100%Estimated Production

700 800 900 1000 1000

Gross Sales Revenue840 960 1080 1200 1200

Expenses

Raw Material Consumption508 580 653 725 725

Utilities1 1 1 1 1

Administrative Overheads 24 24 24 24 24

Salaries17 17 17 17 17

Sales Expenses21 24 27 30 30

Loan Repayment45 45 45 45 45

Maintenance Charges1 1 1 1 1

TOTAL616 692 767 843 843

GROSS PROFIT224 268 313 357 357

Financial Expenses

Interest On Term Loan34 28 21 14 7

Interest On Working

Capital24 28 31 35 35

Sub Total58 55 52 48 42

Depreciation12.8 12.8 12.8 12.8 12.8

Profit Before Tax153 200 248 295 302

Provision For Tax50 66 82 98 100

Profit After Tax102 134 166 198 203

2.12 Financial Indicators

The Average Break Even Point for the project is 40%.


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(Rs. In Lakhs)

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Sales Realisation840 960 1080 1200 1200

Fixed Costs

Salaries21 21 21 21 21

Fixed Selling Expenses21 24 27 30 30

Depreciation (SLM)13 13 13 13 13

Utilities (Fixed)1 1 1 1 1

Admin. Overheads24 24 24 24 24

Loan Repayment45 45 45 45 45

Interest On L.T. Loan34 28 21 14 7

Total Fixed Costs158 155 151 147 140

Variable Cost

Raw Materials508 580 653 725 725

Interest On Working Capital Loan24.23 27.69 31.15 34.61 34.61

Total Variable Costs532 608 684 760 760

Contribution308 352 396 440 440

Breakeven In %51% 44% 38% 34% 32%

Average BEP 40%

The IRR for the project is 18.9%, Average ROI is81% and average DSCR is 3.10.

(Rs. In Lakhs)

Year of OperationParticulars

1 2 3 4 5

Revenue840 960 1080 1200 1200


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Profit Before Tax152.81 199.62 247.54 295.47 302.40

Profit After Tax102.39 133.75 165.85 197.96 202.61

LT Interest

33.54 27.73 20.79 13.86 6.93Depreciation

12.77 12.77 12.77 12.77 12.77

LT Loan Repayment44.72 44.72 44.72 44.72 44.72

Return on Investment (%)59% 72% 84% 96% 96%

Average ROI 81%

Debt-Service Coverage Ratio

- Debt Service 78.26 72.45 65.51 58.58 51.65

- Coverage148.70 174.25 199.42 224.60 222.31

DSCR1.90 2.41 3.04 3.83 4.30

Average DSCR 3.10


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The unit has been assumed to operate at 80% of its installed capacity in the first and second year, 90%

in the third year and 100% capacity from 4thyear onwards of its operation.


The manufacturing process for disposable syringes consists of the following steps:

1. Moulding of the various components

2. Graduation of the moulded parts

3. Assembling

4. Sterilization

5. Quality Control Tests

6. Packaging

The two essential parts to be moulded include cylinder or barrel of the syringe and the plunger orpiston. Injection moulding is suitable for production of large quantity of similar shapes, hence the

syringes are injection moulded.

The raw material polypropylene is fed into the injection moulding machine and moulded in chilled

condition to get better clarity. The moulded syringes are then assembled with the needle in automatic

assembly machine (this profile however deals only with the production of the injection moulded

component of the syringe). The whole assembly is then sterilized in sterilization plant using ethylene

oxide. The completed syringe is then blister packed in automatic packing machine.

The product should conform to drug control specification and drug license should be obtained for

production of this item.

List of Plant & Machinery suppliers is as under:

1. DGP Windsor India Limited

5403, SIDC Industrial Estate,

Place IV, Vatva,

Ahmedabad

2. Central Machinery & Plastic Products

Lojya Estate, Mogra Raod

Andheri (E),

Mumbai - 400 069

3. M/s. Sunanda Industrial Machinery

A Division of Mafatlal

Marg Industries Ltd.


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109, Standard House,

83, Maharshi Karup Road,

Mumbai-400002.


The main raw material required for the project is Polypropylene (PP) while Polyethylene (PE) is

required for packaging. PP required would be around 525 MT at 100% capacity utilisation. Rubber

Gaskets are also required which will be outsourced.

The major utilities required are water, compressed air and power. Water required is around 590 KLPA.

and power required is 200 KW.



3.7 Manpower Requirement & Project Implementation Schedule

Staff Nos

Production Manager 2

Accountant 1

Chemist 2

Sales Executive 2

Operators 10Skilled Workers 10

Unskilled Workers 10

Security 4


Project implementation will take a period of 8 months from the date of approval of the scheme. Break-

up of activities with relative time for each activity is shown below:

S.No. Nature of Activities Period (Month)

1 Scheme Preparation and approval 0-1

2 Provisional registration 1-2

3 Sanction of loan 2-3

4 Clearance from Pollution Control Board 2-5

5 Placement of order for delivery of machine 3-4

6 Installation of machines 4-5

7 Power connection 6-7

8 Trial run 6-7

9 Commencement of production 9 onwards


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Land has not been considered as a part of the project cost because it has been considered to be taken

on lease (as applicable in Assam). One time Land Development Charges have been considered as part

of the Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been

considered as part of operating cost. The total Project Cost is Rs. 395.91 Lakhs as per the table below.


1 Building32.00

2 Machinery279.47



5 Margin Money for Working Capital53.10

6 Contingency18.76


Total395.91


Means of Finance Rs (in lakhs)

Equity 131.96

Debt 263.95

Total395.91



(Rs in Lakhs)

Years of OperationParticulars

1 2 3 4 5

Net WC 212.41 212.41 238.96 265.51 265.51

Available Bank Finance 159.31 159.31 179.22 199.13 199.13

Margin Money 53.10 53.10 59.74 66.38 66.38



S.No. Particulars Expenses(Rs in lakhs)

1 Utilities 1.68

2 Wages & Salaries 23.88


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3 Interest on term loan 39.59

4 Interest on Bank Finance for Working Capital 23.90

5 Raw Material 491.61

6 Depreciation 29.93

7 Maintenance and Annual Charges 0.23

Total 610.82


(Rs. In Lakhs)


Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Production/Sales

Installed Capacity 800 800 800 800 800

Capacity Utilization 80% 80% 90% 100% 100%

Estimated Production 640 640 720 800 800

Gross Sales Revenue 832 832 936 1040 1040

Expenses

Raw Material Consumption 492 492 553 615 615

Utilities 2 2 2 2 2

Administrative Overheads10 10 10 10 10

Salaries 30 30 30 30 30

Sales Expenses 21 21 23 26 26

Loan Repayment 53 53 53 53 53

Maintenance Charges 0.23 0.23 0.23 0.23 0.23

TOTAL 607 607 671 735 735

GROSS PROFIT 225 225 265 305 305

Financial Expenses

Interest On Term Loan 40 33 25 16 8

Interest On Working Capital 24 24 27 30 30

Sub Total 63 57 51 46 38

Depreciation 29.9 29.9 29.9 29.9 29.9

Profit Before Tax 131 138 183 228 237

Provision For Tax 43 46 60 75 78

Profit After Tax 88 93 123 153 158


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(Rs. In Lakhs)

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Sales Realisation 832 832 936 1040 1040

Fixed Costs

Salaries 30 30 30 30 30

Fixed Selling Expenses 21 21 23 26 26

Depreciation (SLM) 30 30 30 30 30

Utilities (Fixed) 2 2 2 2 2

Admin. Overheads 10 10 10 10 10Loan Repayment 53 53 53 53 53

Interest On L.T. Loan 40 33 25 16 8

Total Fixed Costs 185 178 173 167 159

Variable Cost

Raw Materials 492 492 553 615 615

Interest On Working Capital Loan 24 24 27 30 30

Total Variable Costs 516 516 580 644 644

Contribution 316 316 356 396 396

Breakeven In % 58% 56% 48% 42% 40%

AVERAGE BREAK-EVEN 49%

The IRR for the project is 21%, Average ROI is 60%and the average DSCR is 2.38.

(Rs. In Lakhs)


1 2 3 4 5

Revenue 832 832 936 1040 1040

Profit Before Tax 131.22 138.08 183.23 228.37 236.55

Profit After Tax 87.92 92.51 122.76 153.01 158.49

LT Interest 39.59 32.73 24.55 16.37 8.18

Depreciation 29.93 29.93 29.93 29.93 29.93

LT Loan Repayment 52.79 52.79 52.79 52.79 52.79

Return on Investment (%) 51% 51% 60% 69% 69%

Average ROI 60%


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- Debt Service 92.38 85.52 77.34 69.16 60.97

- Coverage 157.44 155.17 177.24 199.30 196.60

DSCR 1.70 1.81 2.29 2.88 3.22Average DSCR 2.38


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4 Drip Irrigation System

4.1 Introduction

Drip irrigation is a slow but even application of low pressure water to soil and plants using plastic

tubing placed directly at the root zone of the plants. Drip irrigation can help use water efficiently. A

well-designed drip irrigation system loses practically no water to runoff, deep percolation, or

evaporation. Drip irrigation reduces water contact with crop leaves, stems, and fruit. Thus, conditions

may be less favourable for the onset of diseases. Irrigation scheduling can be managed precisely to

meet crop demands, holding the promise of increased yield and quality.

Agricultural chemicals can be applied more efficiently with drip irrigation. Since only the crop root

zone is irrigated, nitrogen present in the soil is less subject to leaching losses, and the applied

fertilizers can be used more efficiently. In the case of insecticides, lesser products might be needed.

A wide range of components and system design options is available. Drip tape varies greatly in its

specifications, depending on the manufacturer and its use. The distribution system, valves, and pumps

must match the supply requirements of the tape. Tape, depth of tape placement, distance between

tapes, emitter spacing and flow, and irrigation management systems must be chosen carefully based on

crop water requirements and the soil properties. Drip tubing rather than drip tape is usually used for

perennial crops such as grapes or poplar trees. Drip irrigation system delivers water to the crop using a

network of mainlines, sub-mains and lateral lines with emission points spaced along their lengths.

Each dripper/emitter orifice supplies a measured, precisely controlled uniform application of water,

nutrients, and other required growth substances directly into the root zone of the plant.

Water and nutrients enter the soil from the emitters, moving into the root zone of the plants throughthe combined forces of gravity and capillary. In this way, the plants withdrawal of moisture and

nutrients are replenished almost immediately, ensuring that the plant never suffers from water stress,

thus enhancing quality, its ability to achieve optimum growth and high yield.


The use of drip irrigation is rapidly increasing around the world, and this trend is expected to continue

in the foreseeable future. With increasing demand on limited water resources and the need to minimise

environmental consequences of irrigation, drip irrigation technology offers many advantages. The use

of drip irrigation in India has increased rapidly from the time of initial testing at Tamil NaduUniversity in Coimbatore in 1970 to all-India coverage of 55,000 hectares by 1992 and is now

estimated to be 225,000 hectares. Studies of comparative crop yield and water use for surface and

conventional drip irrigation of different crops carried out at agricultural universities in India have

consistently found water savings of 30-60% and yield increase of 20-40 % favouring drip irrigation

over surface irrigation methods. The Indian Committee on Irrigation and Drainage estimates the

potential for drip irrigation in India of 10.5 million hectares.

4.3 Plant Capacity



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Working hours/day: 8 (1 shift)


Annual Production capacity: 600 TPA HDPE pipes and 400 TPA of LLDPE valves andfittings.




A process for making low cost drip irrigation lines comprises molding a drip emitter having an

elongated labyrinth channel formed in the depth of the emitter body. Emitters of other configurations

also can be used in the process. A plastic film is extruded and passed through a film die with an air

injection tube at one end forming a plastic film bubble. At the bottom of the extruded plastic film

bubble, a pair of pressure rolls join opposite faces of the bubble to form a continuous unitary extruded

plastic film sheet. The emitters are moved in series towards the nip of the pressure rolls and are

inserted in sequence with their labyrinth faces facing toward the hot bubble. The emitters are bonded

to the extruded film sheet using the heat of extrusion, and the external sheet forms one face of the

labyrinth channel through each emitter. After laminating the emitter to the extruded film, an exit hole

is formed through the film to each emitter and the film is then wrapped and bead sealed to form a

continuous flexible drip irrigation tube with the emitters spaced apart along the inside of the tube. The

process can be used for making multiple drip irrigation lines in parallel along a single extruded plastic

film sheet.

The Machinery required is as under:

Machinery cost of Drip Irrigation project Cost in Rs.

Blenzor IJM 1000 Injection Moulding Machine 5,75,000/-

50 MM PIPE PLANTMax. Extrusion Output: 50 kgs./hr.

9,00,000/

Machinery Suppliers:

1. SS Mechanical Engineers,


New Delhi-110027


2. Blenzor ( India )

1-A,First Floor,

Sharda Mansion,

Dr.Babasaheb Ambedkar Road,


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Dadar East, Mumbai-400014


The raw material required for the project is HDPE for making pipes and LLDPE for the valves and

fittings. The raw material required would be around 612 MT of HDPE and 408 MT of LLDPE at

100% capacity utilisation.

The major utilities required are water and power. Water required is around 460 KLPA. and power

required is 150 KW.


The total land required is 1500 sq.m. with the built-up area of 600 sq.m.


Staff Nos

Plant Manager 1

Maintenance Manager 1


Accountant 2

Supervisors 4

Skilled Workers 10


Security 3


4.8 Project Cost/ Fixed Capital Requirement & Means of Finance:


on lease (as applicable in Assam). One time Land Development Charges have been taken as part of the

Project Cost. Also, Special Maintenance Charges and an Annual Service Charge have been considered

as part of operating cost. The Total Project Cost is Rs. 190.49 Lakhs as per the table below:


1 Building24.00

2 Machinery63.00



5 Margin Money for Working Capital

47.92


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Total190.49



Equity 63.49

Debt 127.00

Total190.49


The Total Working Capital Requirement is given below:


1 2 3 4 5

Net WC 191.70 204.48 230.03 255.59 255.59


Margin Money 47.92 51.12 57.51 63.90 63.90



Particulars Expense(Rs in lakhs)

Utilities0.64

Wages & Salaries17.94

Interest on term loan19.05

Interest on Bank Finance for Working Capital21.57

Raw Material528.20

Depreciation9.46

Maintenance Charges0.35

Total597.21


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(Rs. In Lakhs)


Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Production/Sales

Installed Capacity of HDPE Pipes 600 600 600 600 600

Installed Capacity of LLDPE valves and fittings 400 400 400 400 400


Estimated Production of Pipes 450 480 540 600 600

Estimated Production of Valves and Fittings 300 320 360 400 400


Expenses


Utilities 1 1 1 1 1


Salaries 18 18 18 18 18




TOTAL 600 637 709 782 782

GROSS PROFIT 120 131 155 178 178

Financial Expenses



Sub Total 41 39 38 37 33

Depreciation 9.5 9.5 9.5 9.5 9.5






Yr -1 Yr-2 Yr -3 Yr -4 Yr-5


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Fixed Costs

Salaries 22 22 22 22 22

Fixed Sellin Ex enses 18 19 22 24 24

De reciation SLM 9 9 9 9 9

Utilities Fixed 1 1 1 1 1

Admin. Overheads 10 10 10 10 10

Loan Re a ment 25 25 25 25 25



Variable Costs

Raw Materials 528 563 634 704 704

Interest On Workin Ca ital Loan 22 23 26 29 29


Contribution 170 182 204 227 227

Breakeven In % 61% 56% 49% 44% 42%

Avera e Break-Even 51%

The IRR for the project is 30.8%, Average ROI is 67%and the average DSCR is 2.58.

Year of O eration (Rs. In LakhsParticulars

1 2 3 4 5Revenue 720 768 864 960 960


Profit After Tax 46.76 55.77 72.01 88.25 90.89

LT Interest 19.05 15.75 11.81 7.87 3.94

De reciation 9.46 9.46 9.46 9.46 9.46

LT Loan Re a ment 25.40 25.40 25.40 25.40 25.40

Return on Investment % 52% 57% 68% 78% 78%

Avera e ROI 67%Debt-Service Covera e Ratio

- Debt Service 44.45 41.15 37.21 33.27 29.34

- Covera e 75.27 80.98 93.28 105.58 104.28

DSCR 1.69 1.97 2.51 3.17 3.55

Avera e DSCR 2.58


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5 Geo-Textiles

5.1 Introduction

Geo-synthetics is the collective term applied to thin, flexible, sheets of material incorporated in or

within soil to enhance its engineering performance.Applications of geo-synthetics mainly fall within

the domain of civil engineering applications.Geo-synthetics as a separate market segment has been

developed and being used at an increasing pace for a greater number of geotechnical applications. The

specific families of geo-synthetics are focused on different categories such as, geo-textiles, geo-grid,

geo-nets, geo-membranes, geo-synthetic clay liners, geo-pipe, geo-composites and others.

Geo-textiles form one of the two largest groups of geo-synthetics, which are textile fabrics (woven,

non-woven, knitted, braided, etc) specially designed to be used as construction material in conjunction

with other geotechnical materials such as soil and rock in applications of civil engineering nature.

There are at least hundred specific application areas for geo-textiles; however, the fabric alwaysperforms at least one of five discrete functions, namely separation, reinforcement, filtration, drainage

and protection.


The current major use of geo-textiles is within the foundation components or load-supporting part of a

civil engineering structure.More recently geo-textiles have been used to enhance tensile properties of

civil engineering materials themselves, such as road surface and sub surfaces in both construction of

new and renovation of old highways, mattresses for erosion control etc.

Basically, all available geo-textiles can be broadly classified on the basis of manufacturing techniques

namely woven, non-woven and knitting. Whereas the initial demand of geo-textiles were met by

woven fabrics, the spurt in demand of geo-textiles was observed only on introduction of non-woven

geo-textiles in the market because they are more flexible and deformable.

According to a Study conducted by Freedonia Group, Spunbonded nonwovens would remain the

dominant product, accounting for half of the total volume of non-wovens in 2009. Approximately 65%

of hygiene product components, which include coverstocks, backsheet use spunbond nonwovens.

The total non-woven production in India was estimated to be around 58,000 tons in 2005 out which

14%, i.e 8000 tons was made through spunbond technology (as shown in the chart below) which wasconsumed as durables for manufacturing of interlinings, carpets and geotextiles.

The two major producers of PP non woven spunbond fabric are:

Unimin India Ltd., Mumbai

PVD Plast Mould Industries Ltd., Mumbai (now known as Fiberworld (India) Limited)

These units are 100% EOU, having present production capacity of 3,000 TPA and 3,500 TPA

respectively.


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Hence, at present the entire requirement of spunbond fabric for personal hygiene products and

healthcare textiles is met through imports from countries like China, Brazil, Korea and Taiwan.

5.3 Plant Capacity




Annual Production capacity: 2000 TPA of non-woven PP geotextiles




One of the techniques to manufacture non-woven fabric is Spun-bonding. Spun-bond fabrics are

produced by depositing extruded, spun filaments onto a collecting belt in a uniform random manner

followed by bonding the fibers.

The spun-bond fabric consumption is divided into two segments viz disposables and durables. The

disposables consume about 55-65% of the spun-bond fabric and the rest 35-45% is consumed in

making durables. Geo-textiles fall under the category of durables.

For production of high quality, needle-punched, staple fibre geo-textiles, continuous filaments ofpolypropylene are extruded on a fibre extrusion line. Fibres are then cut, opened and laid into a web.

They then pass through thousands of needles that penetrate and orient the fibres, locking them with

one another. After this they are heat-set and rolled to create non-woven geo-textiles.

This manufacturing process is detailed out further as below:


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The spunbond nonwoven process consists of several integrated steps for conversion of polymer or

resin chips into finished fabric. The major steps of the process are:

Polymer Feed - Polymer feedstock in pellet or powder form is conveyed from storage bins or silos to

the feeder section of an extruder.

Extruder - Polymer feedstock is mixed with stabilizers, additives, color master-batch, resin modifiers,

or other additives. This blend of raw materials is melted within the extruder barrel.

Fiber Spinning - The molten polymer mix is pumped through a heated conduit to a resin filter system

and then to a distributor section that leads to the spinnerette units. The spinnerette usually consists of a

perforated plate arranged across the width of the line. The resin is forced through the many small holes

in the spinnerette plate to form continuous filaments.

Quenching / Attenuation Zone - As the filaments emerge through the spinnerette holes, they are

directed downward into quench chambers or chimneys. As the filaments travel through these

chambers, cool air is directed across the filament bundle to cool the molten filaments sufficiently tocause solidification. The filaments are then led further downward into a tapered conduit by an

airsteam. A second stream of high velocity air is directed parallel to the direction of the filaments,

causing an accelerated and accompanying attenuation or stretching of the individual filaments. This

mechanical stretching results in increased orientation of the polymer chains making up the continuous

filament. Such orientation leads to increased filament strength, along with modification of other

filament properties, including the filament denier or thickness.

Web Forming -The filaments are deposited in a random manner on a moving, porous forming belt. A

vacuum under the belt assists in forming the filament web on the forming belt and in removing the air

used in the extrusion / orientation operation. In some processes, an electrostatic charge is placed on the

filament bundle to ensure spreading and separation of individual filaments. In other processes,deflector plates are used to lay down the filament sheet in a random manner on the forming belt.

Bonding -The continuous filament web is delivered to a bonding section, where one of several

bonding methods can be used to bond the loose filaments into a strong, integrated fabric.

Slitting / Winding -The bonded fabric encounters a slitting section where the two edges are trimmed

to eliminate the non-uniform, rough edge created during the manufacturing step. In some operations,

the fabric may also be further slit into precise, smaller widths to provide finished rolls of precise

dimension. Following slitting, the fabric is wound onto a larger roll, either a full width roll or a series

of narrow slit rolls. From this point, the fabric rolls are ready for wrapping and shipping.

The machinery required is as under:

S. No. Machinery Product Output Number required

1 Leftover opener 50-80 kg/hr 4

2 Fine-Opener 30-180 kg/hr 4

3 Feeder 60-180 kg/hr 4

4 Carding Machine 60-180 kg/hr 4

5 Cross Lapper 20-40 m/min 4


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6 Pre-Needle machine 1-6 m/min 4

7 Main-Needle M/C 1-6 m/min 12

8 Cutting & Coiling Machine 1-15m/min 4

Geo-textile machinery is not manufactured in large scale in India; hence we have considered thequotations from Chinese manufacturers. List of Plant & Machinery suppliers is as under:

1. CNBM International Corporation, China

2. Changshu Weicheng Non-woven Equipment Co. Ltd, China

3. Jiangsu Yingyang Non-woven Machinery Co. Ltd, China

We have considered the production line from Changshu Weicheng. The production line produces wide

geo-textiles by needle-punching method, which are widely used in construction fields, such as separate

layer (road foundation & railway foundation, airport foundation, asphalt foundation)protection layer

(reservoirs, channels & tunnels, river and sea bank), filtration layer (drainage)reinforced layer (soil

stabilization, road surface facility), etc.


The major raw material required for the project is Polypropylene. The raw material required would be

around 2100 MT at 100% capacity utilisation.

The major utilities required are water and power. Water required is around 850 KLPA and power

requirement is 700 KW.

5.6 Land & Built-up Area Requirement, co



The organizational structure of the geo-textiles plant is illustrated in Figure 1. The Plant Manager, who

has overall responsibility for quality, ensures that all quality requirements are met. This includes

incoming inspection, process control and product labelling. The Plant Manager is further responsiblefor approving raw materials and testing finished products according to ASTM or other industry

standards.


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Staff Nos

V.P. (Engineering) 1

Plant Manager 1

Maintenance Manager 1

Laboratory Manager 1


Accountant 2

Supervisors 4

Skilled Workers 25


Security 3


Figure 2 shows the manufacturing quality system under which all geo-textile products should be

manufactured.



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as part of operating cost. The Total Project Cost is Rs. 959.68 Lakhs as detailed below:

S.No. Cost Head Cost (in Rs. Lakhs)

1Building 320.00

2Machinery 424.98

3Miscellaneous Fixed Assets 47.63

4Preliminary and Pre-Operative Expenses 2.00

5Margin Money for Working Capital 119.37

6Contingency Expenses 45.70

7Land Development 20.00

Total Cost 959.68



Equity 319.86

Debt 639.82

Total959.68



(Rs in lakhs)


1 2 3 4 5

Net WC 477.48 545.70 613.91 682.12 682.12


Margin Money 119.37 136.42 153.48 170.53 170.53



S.No. Particulars Expense(Rs in lakhs)

1 Utilities 5.82





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6 Depreciation 39.38

7 Maintenance Charge 2.30

Total 1281.23


(Rs.in Lakhs)


Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Production/Sales

Installed Ca acit 2000 2000 2000 2000 2000

Ca acit Utilization 70% 80% 90% 100% 100%



Ex enses

Raw Material Consum tion 1051 1201 1351 1502 1502

Utilities 6 6 6 6 6


Salaries 33 33 33 33 33

Sales Ex enses 47 54 61 68 68

Loan Re a ment 128 128 128 128 128

Maintenance Char es 2 2 2 2 2

TOTAL 1294 1451 1608 1765 1765

GROSS PROFIT 596 709 822 935 935

Financial Ex enses


Interest On Workin Ca ital 54 61 69 77 77

Sub Total 150 141 129 116 97

De reciation 39.4 39.4 39.4 39.4 39.4



Profit After Tax 272 354 438 522 535


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The Average Break-Even Point for the project is 37%.

(Rs in Lakhs)

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5


Fixed Costs

Salaries 41 41 41 41 41

Fixed Sellin Ex enses 47 54 61 68 68

De reciation SLM 39 39 39 39 39

Utilities Fixed 6 6 6 6 6


Loan Re a ment 128 128 128 128 128



Variable Cost

Raw Materials 1051 1201 1351 1502 1502

Interest On Workin Ca ital Loan 53.72 61.39 69.06 76.74 76.74


Contribution 785 897 1,010 1,122 1,122

Breakeven In % 49% 42% 36% 31% 29%

Avera e BEP 37%

The IRR for the project is 23.2%, Average ROI is76%and the average DSCR is 2.91.

(Rs. In Lakhs

Year of O erationParticulars

1 2 3 4 5

Revenue 1890 2160 2430 2700 2700


Profit After Tax 272.39 354.17 438.09 522.01 535.30

LT Interest 95.97 79.34 59.50 39.67 19.83

De reciation 39.38 39.38 39.38 39.38 39.38

LT Loan Re a ment 127.96 127.96 127.96 127.96 127.96

Return on Investment (% 56% 67% 78% 89% 89%

Avera e ROI 76%

Debt-Service Covera e Ratio

- Debt Service 223.94 207.30 187.47 167.63 147.80


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- Covera e 407.75 472.89 536.98 601.06 594.52

DSCR 1.82 2.28 2.86 3.59 4.02

Avera e DSCR 2.91


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6 Greenhouse Film

6.1 Introduction

A greenhouse is a structure with a glass or plastic roof (frequently glass or plastic walls); it heats up

because incoming solar radiation from the sun warms plants, soil, and other things inside the building.

Air warmed by the heat from hot interior surfaces is retained in the building by the roof and wall.

These structures range in size from small sheds to very large buildings.

Greenhouses can be divided into glass greenhouses and plastic greenhouses. Plastics mostly used are

PE film and multi-wall sheet in Poly Carbonate or Acrylic Glass. The use of polymers composite as

cover materials for greenhouse or agricultural films, is growing globally because it can improve

product quality and yield by protecting plants from extreme weather changes, optimizing growth

conditions, extending the growing season and reducing plant diseases. While the films are being made,

various additives and stabilizing agents are employed to provide desired applications includingprevention of thermal oxidation, discoloration in the melt process and improvement of long term heat

and light stability.


At present the use of greenhouses in agriculture is growing because greenhouses protect crops from

too much heat or cold, shield plants from dust storms and blizzards, and help to keep out pests. Light

and temperature control allows greenhouses to turn barren land into arable land. They are being used

for growing flowers, vegetables, fruits, and tobacco plants.

Their usage and hence demand for LLDPE films for the same is expected to grow because cultivating

in a greenhouse has distinctive advantages like the yield increases by 5 - 15 times or even more, there

is a reduction in labour cost, less fertilizer is required, lesser requirement of water requirement, less

chances of disease attack, thus reduction in disease control cost, they help in cultivating even in

problematic topography, climate and soil conditions, they are easy to operate, maintain & control.

Greenhouse film is mostly produced by LDPE and LLDPE blending. It can also be co-extruded

composite film of LLDPE, LDPE and EVA.

6.3 Plant Capacity




Annual Production capacity: 1000 TPA greenhouse film.




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These films are made by a process known as co-extrusion blown film process, in which plastic pellets

or flakes and additives, if any, are premixed, melted into an extruder, propelled into a die which causes

the molten material to flow around a mandrel and emerge through a ring-shaped opening in the form

of a tube. A die with multiple flow channels is used in co-extrusion to form multiple individual layers.Air is introduced into the tube causing it to expand and bubble. The air is contained in the bubble by

the die at one end and by nip rollers at the other end. Even air pressure is maintained to ensure uniform

thickness of the bubble. Airflow around the outside of the bubble cools and solidifies the melt. The

bubble is stretched to orient the plastic and improve its strength and properties. After solidification, the

film bubble moves into a set of pinch rollers to flatten and roll the material onto a winder.

The machinery required is a co-extrusion blown film plant.

Machinery Suppliers:

1. SS Mechanical Engineers


New Delhi-110027


2. Vijayalaxmi Machines Pvt. Ltd.

A-31, Naraina Industrial Area,

Phase - 1, New Delhi - 110 028

3. Shreya Industries, Ahmedabad

B / H 30, Sidhdhpura Estate,

Near Ramol X Road, Phase 4

G. I. D. C, Vatwa, Ahmedabad - 382 445


The main raw material required is LLDPE. Raw Material requirement at 100% capacity is 1020 MT.

Utilities required are power and water. Around 418 KL of water and 100 KW of power are required.




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Staff Nos

Plant Mana er 1

Production Mana er 1

Accountant 2

Su ervisors 2

Skilled Workers 10


Securit 3

Total Man ower Re uired 29

6.8 Project Cost/ Fixed Capital Requirement & Means of Finance:

Land has not been considered as a part of the project cost because it has been considered to be takenon lease (as applicable in Assam). One time Land Development Charges have been taken as part of theProject Cost. Also, Special Maintenance Charges and an Annual Service Charge have been consideredas part of operating cost. The Total Project Cost is Rs. 220.36 Lakhs as detailed in the table below:


1 Building64.00

2 Machinery50.18

3 Miscellaneous Fixed Assets

44.50





Total220.36


Means of Finance Rs in lakhsEquity 73.45

Debt 146.91

Total220.36




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(Rs. In Lakhs)

Years of O erationParticulars

1 2 3 4 5

Net WC 181.52 207.46 233.39 259.32 259.32


Mar in Mone 45.38 51.86 58.35 64.83 64.83



S.No. Particulars Expense(Rs in lakhs)

1 Utilities 0.85


3 Interest on term loan 22.044 Interest on Bank Finance for Working Capital 20.42


6 Depreciation 9.61

7 Maintenance Charge 0.46

Total 576.26


(Rs.in Lakhs)


Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Production/Sales





Expenses


Utilities 1 1 1 1 1


Salaries 15 15 15 15 15





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TOTAL 580 655 730 805 805

GROSS PROFIT 99 121 143 165 165

Financial Expenses

Interest On Term Loan 22 18 14 9 5Interest On Working Capital 20 23 26 29 29

Sub Total 42 42 40 38 34

Depreciation 9.6 9.6 9.6 9.6 9.6






(Rs In Lakhs)

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5


Fixed Costs

Salaries 19 19 19 19 19

Fixed Selling Expenses 17 19 22 24 24

Depreciation (SLM) 10 10 10 10 10

Utilities (Fixed) 1 1 1 1 1





Variable Cost

Raw Materials 508 580 653 725 725

Interest On Working Capital Loan 20.42 23.34 26.26 29.17 29.17


Contribution 151 172 194 215 215

Breakeven In % 71% 62% 54% 47% 45%

Average Break-Even 56%

The IRR for the project is 21.2%, Average ROI is 51%and the Average DSCR is 2.02.


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(Rs. In Lakhs)


1 2 3 4 5Revenue 679 776 873 970 970


Profit After Tax 31.28 46.64 62.50 78.35 81.40

LT Interest 22.04 18.22 13.66 9.11 4.55

Depreciation 9.61 9.61 9.61 9.61 9.61

LT Loan Repayment 29.38 29.38 29.38 29.38 29.38

Return on Investment (%) 36% 44% 53% 62% 62%

Average ROI 51%


- Debt Service 51.42 47.60 43.05 38.49 33.94

- Coverage 62.92 74.47 85.77 97.07 95.57

DSCR 1.22 1.56 1.99 2.52 2.82

Average DSCR 2.02


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7 HDPE Pipes

7.1 Introduction

Pipes made from Polyethylene (PE) are a cost effective solution to a number of piping problems in

Metropolitan, Municipal, Industrial, Underwater, Mining, Landfill Gas extraction, Cable duct and

agricultural applications. HDPE Pipes are manufactured from High Density Polyethylene. The pipes

are better substitutes for costly Metallic and Non-Metallic pipes like CI, GI, AC, RCC & MS.

HDPE Pipes are generally made black in colour by addition of Carbon Black to protect from ageing

& degradation due to ultraviolet sunrays. They have wide application areas and can be used for

potable water supply, irrigation/agriculture, gas transmission, industrial effluents, telephone cable

ducts, sewerage & drainage, sprinkler system, slurry transportation, chemical industries, tube-wells

etc.

They have the lowest repair frequency per kilometre of pipe per year compared to all other pipematerials used for urban water and gas distribution. HDPE pipe is actually a superior typeproduct for many applications. The superiority of HDPE pipes can be seen from thefollowing properties:

Economical than traditional pipe material.

Resistant to chemicals- external and internal.

Resistant to electrolytic corrosion.

Resistant to rusting and rotting.

Light Weight - One sixth of the weight of steel. Low specific gravity giving an outstanding

light weight product for easy transportation, handling, fitting etc.

Very good thermal insulation due to low thermal conductivity.

Smooth bore provides less head loss. Flow resistance is approximately 30% less than that of

conventional pipes, permitting the use of a smaller bore pipe for a given rate of flow.

Perfect stability for material reduces the risk of ageing.

Fire resistant

Low maintenance cost.

Easy to install.

Longer Life than G.I., M.S. Cement & Other Pipes.


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There are 2-3 HDPE pipes manufacturers in the NER, with a total consumption of about 20-30 TPM

HDPE, of which about 50% is consumed in Assam. The HDPE pipes are mainly used in household

and agricultural sector. HDPE pipes are used in drip irrigation systems as well as for water and

sewerage. They have a large market potential in the North-East because they can replace the PVC andGI pipes that are currently and most widely used in the region.

7.3 Plant Capacity




Annual Production capacity: 600 TPA laminated HDPE Pipes.




When HDPE pipes are made, HDPE granules or pellets are generally fed into a hopper where they are

melted down into HDPE resin. The HDPE resin is then carried through a cylindrical barrel with a

rotating screw and pumped through to the extrusion point, where it is pushed through a circular die

into yet another cylindrical barrel containing a die, an annular channel of clear space where the pipewill be formed, and an outer shell known as a mandrel. The HDPE is pushed along this die and formed

into the shape of the pipe. The pipe is then drawn off at the end of the extrusion moulding barrel,

cooled and cut to length.

The process is fairly noisy, and needs to be overseen by experienced technicians in order that high

quality HDPE pipes emerge. This is especially true in case HDPE pipes are created from reprocessed

HDPE. Problems can emerge if the HDPE gets too hot when melted, or if friction in the screw is too

great. If the temperature rises too high, then the molecular structure of the HDPE can begin to break

down, reprocessed HDPE is more susceptible to this as it has already undergone one heating process,

which predisposes it to later weaknesses. If the molecular structure of the HDPE begins to fail, then

the structural soundness of the pipe gets compromised.

The machinery required for manufacturing HDPE pipes is as under:

1. Pipe Extrusion Plant (complete with hopper, barrels and dies)

2. Cutter

List of Machinery Suppliers:

1. Green Hose Extrusion Engineering

B-904, Akshardham Towers,


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Nr. Shahibaug Underbridge,

Shahibaug, Ahmedabad-380004

Gujarat

2. Suresh Engineering Works

14 B, Kalyan Vishranti Grah,

2, South Tukoganj

Indore - 452 001,

Madhya Pradesh

3. Umang Engineers

45, Adarsh Estate, Part-1,

Near Johnson Pump, Odhav

Ahmedabad - 382 415

Gujarat


The raw material required is HDPE. Raw Material requirement at 100% capacity is 612 MT. Utilities

required are power and water. Around 432 KLPA of water and 75 KW of power are required.




Staff Nos


Accountant 2

Supervisors 4

Skilled Workers 10


Security 3






as part of operating cost. The Total Project Cost is Rs. 255.95 Lakhs as per the table below:


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1 Building160.00

2 Machinery27.27

3 Miscellaneous Fixed Assets

16.29





Total255.95

The means of finance considering Debt-Equity Ratio of 2:1 is:


Equity 85.31Debt 170.64Total 255.95



(Rs. In Lakhs)

Years of OperationParticulars1 2 3 4 5

Net WC 114.72 131.11 147.50 163.89 163.89


Margin Money 28.68 32.78 36.87 40.97 40.97



S.No. Particulars Expense(Rs in lakhs)1 Raw materials 447.20

2 Utilities 0.64




6 Depreciation 9.17

7 Maintenance Charges 1.15

Total 511


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(Rs.in Lakhs)


Yr -1 Yr-2 Yr -3 Yr -4 Yr-5

Production/Sales





Expenses


Utilities 1 1 1 1 1


Salaries 18 18 18 18 18



Maintenance Charges 1 1 1 1 1

TOTAL 397 444 491 537 537

GROSS PROFIT 170 204 238 273 273Financial Expenses



Sub Total 39 36 32 29 24

Depreciation 9.2 9.2 9.2 9.2 9.2






(Rs In Lakhs)

Yr -1 Yr-2 Yr -3 Yr -4 Yr-5



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Study and Action Plan for Promoting Downstream Plastic Processing & Allied Industries Mott MacDonaldOn Assam Gas

down stream project profiles regarding plastics

Documents