12-13-1086/1, Plot No.78, Kimty Colony, Shiridi Sai Nagar, Tarnaka, Sec’bad - 500 017.

Tel.: 27016135/40269625, , e’mail:oriolepackaging@gmail.com

Blue Packagingjay

Project Report

on

Mfg. Unit of Blow Moulded Containers

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Cooling TowersChilling Plant

Air CompressorMoulds

Scrap Grinder

Main MachinerY

Contents

Summary

Introduction

Basis & Presumptions

Process of Manufacture

Blow Moulding Process

Location of Unit

Unit Name

Financial Analysis

Financial Aspects

Break Even Analysis

Repayment Schedule

Machinery Suppliers

Machine Details

Blow Moulding Machine

Scrap Grinder

High Speed Mixer

Quality Checking Tests

Moulds

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Summary

Name of the unit Bluejay Packaging1.

Type of ProjectHDPE (High-density polyethylene)

Blow Moulded Containers2.

Constitution Proprietor ship Firm3.

Production Capacity 170 TPA (Tonnes per Annum)4.

Location of the unit Cherlapally Phase III5.

Total Project Rs. 27,00,000.006.

P A C K A G I N G

INTRODUCTIONPacking Industry is one such industry where lot of SMES are concentrated. In India the consumer

pracking is undergoing adramatic change in recent past. In many Industries the plastic

containers are replacing conventional metal containers and glass containers because of their

comparatively better properties and ease of handling and transportation. Small size plastic

containers are used for packing of drugs, pharmaceuticals, insecticides, food items etc. The

plastic blow moulded containers are made from HDPE ( High-density polyethylene), LDPE (Low-

density polyethylene ), PP (Polypropylene) etc. Blow moulded plastic containers are finding great

demand in modern era. In replacing the traditional Metal / Non Metal and Glass containers

throughout the world. With latest trends in Blow Moulding technology and advanced machinery

and National and International standards moulds and dies, many types of packaging containers

are manufactured with accurate tolerance and fine quality. To suit the requirement of each and

every product manufacturing. These products includes Pet bottles, Dropper bottles, Upper

Handle bottles, Open top drums, wide mouth drums, Narrow mouth drums, Barrels, Jerry Cans &

Carboys, Square Jars, Round Jars, Rib Jars, Thin walled food packaging containers etc. They are of

different types and designs that are manufactured to cater the need of packaging. With high

quality raw materials procurement, blow moulded articles and containers are manufactured

with superior quality associated with convenient shapes and sizes, Strong and Sturdy

construction, Compact designs, Compatibility, Safe to use etc. AS there is very good demand for

plastic containers of various sizes and shapes and quality to meet the requirment of one and all.

Though there are lot of products can be manufactured by blow moulding technology. Are hope

ful of aiihably we would like to maintain the following in order to fulfill the needs of our clients

and consumers and I hope I can capture good market. Share with in a shortening.

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v Strong and Sturdy: The products are made out of special grade High Density

Polyethylene (HDPE) with excellent strength to withstand all transit hazards in any

conditions.

v Standard Designs: It includes wide range of latest & standard designs in packaging

products to provide and meet the requirement of each client or end user with latest

innovative designs and products with ease in handling to provide with complete bulk

packing solutions.

v Compatibility: The material used in production i.e. High Density Polyethylene (HDPE) is of

food grade (certified ) and compatible with food chemicals, petroleum products,

hazardous chemicals, Resins etc.

v Safety: The products goes through with multiple tests to pass all of them and use certified

virgin raw material only to give out complete packing solution.

v Packaging Standards: The products are also confirms national and international

packaging standards and are listed with IIP (Indian Institute of Packaging) to provide UN

Certification and other testing requirements.

v Price : Believing in right & fair price policy, in which we are ready to share information to

make the customer or end user comfortable about on their purchasing decisions.

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The promoter Mr. G. Suresh Babu as an SSI unit. Is the main promoter of Spectrum

Designers. Who is having enough of experience since 2001 closely associated with Dr. Reddy’s

Laboratories in designing. Printing & Packaging of different consumers packs of

Pharmaceuticals manufactured by Dr. Reddy’s Laboratories Hyderabad, as inside ancillary

having successfully assuming the unit, along with other clients.

As backword integration and on also encouraged by lot existing clients who is taking our

services in designing the packing material other literature and advertising and publishing

material right from ides developing and designing stage. Encouraged by the enquires and the

confidence and the assurance offered by the exciting clients and known customers related and

associatis it is thought to promote their unit in the name of ORIOLE PACKAGING as a different

manufacturing unit.

Promoters

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BIS SPECIFICATIONS

SCOPE

a) Formulation of Indian Standards on rigid, semi-rigid and flexible plastic containers, closures and their

methods of test.

b) To co-ordinate with the work of ISO/TC 122 (Plastic Packaging only) so far as it concerns its own scope

of work.

c) To co-ordinate with the work of ISO/TC 61 ‘ Plastics ‘ so far as it concerns its own scope of work.

SCOPE

IS No. TitleSl.No.

IS 7408 (Part 1/ Sec 0): 2000 Blow moulded polyolefin containers Part 1 Up to 5 litres capacity(Second revision)

1.

IS 7408 (Part 2/ Sec 0): 2000

IS 7408 (Part 3/ Sec 0): 2000

Blow moulded polyolefin containers Part 2 Up to 5 litres up to andincluding 60 litres capacity (first revision).

Blow moulded polyolefin containers Part 3 Closed head containersover 60 litres, upto and including 250 litres capacity ( first revision)

2.

3.

IS 8747:1977 Methods of tests for environmental stress-crack resistance of Blow moulded polyethylene containers

4.

IS 1080 : 1994

IS 15473 (Part 0/Sec 0) : 2004

Blow moulded HDPE containers for packing of vanaspati ( secondrevision)

Blow moulded HDPE containers for packaging of edible oilspecification.

5.

6.

TECHNOLOGY

P A C K A G I N G

Blow molding is a manufacturing process that is used to create hollow plastic parts by

inflating a heated plastic tube until it fills a mold and forms the desired shape. The raw

material in this process is a thermoplastic in the form of small pellets or granules, which is

first melted and formed into a hollow tube, called the parison. There are various ways of

forming the parison, as explained below. The parison is then clamped between two mold

halves and inflated by pressurized air until it conforms to the inner shape of the mold cavity.

Typical pressures are 25 to 150 psi, far less than for injection molding. Lastly, after the part

has cooled, the mold halves are separated and the part is ejected.

Parts made from blow molding are plastic, hollow, and thin-walled, such as bottles and

containers that are available in a variety of shapes and sizes. Small products may include

bottles for water, liquid soap, shampoo, motor oil, and milk, while larger containers

include plastic drums, tubs, and storage tanks. Blow molded parts can be formed from a

variety of thermoplastic materials, including the following:

Low Density Polyethylene (LDPE)

High Density Polyethylene (HDPE)

Polyethylene Terephtalate (PET)

Polypropylene (PP)

Polyvinyl Chloride (PVC)

As mentioned above, there are different methods used to form the parison which

distinguish the following three forms of blow molding:

Extrusion blow molding

An extruder uses a rotating screw to force the molten plastic through a die head that forms

the parison around a blow pin. The parison is extruded vertically between the two open

mold halves, so they can close on the parison and blow pin. Pressurized air flows through

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the blow pin to inflate the parison. This is the most common type of blow molding and is used

to manufacture large quantities of relatively simple parts.Injection blow molding

The molten plastic is injection molded around a core inside a parison mold to form the hollow

parison. When the parison mold opens, both the parison and core are transferred to the blow

mold and securely clamped. The core then opens and allows pressurized air to inflate the

parison. This is the least commonly used method because of the lower production rate, but is

capable of forming more complicated parts with higher accuracy. Injection blow molding is

often preferred for small, complex bottles, such as those in medical applications.

Stretch blow molding

The parison is formed in the same way as injection blow molding. However, once transferred to

the blow mold, it is heated and stretched downward by the core before being inflated. This

stretching provides greater strength to the plastic. Stretch blow molding is typically used to

create parts that must withstand some internal pressure or be very durable, such as soda

bottles.

P A C K A G I N G

A Balloonof Material is

Injected BetweenMold Halves

1 2 3Mold ClosesAir Forced In

Pushes MaterialInto Mold Cavities

Mold OpensHollow PartIs Removed

And Trimmed

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P A C K A G I N G

STEPS INVOLVING IN BLOW MOULDING PROCESS

PLASTIC GRANULES DROPPING ON TO SCREW THREAD

HDPE GRANULES

HEATMOULD

FLUID PLASTIC MOVED BY ROTATING SCREW THREAD

HDPE GRANULES

HEATMOULD

HEATMOTOR

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FLUID PLASTIC FORCED INTO MOULD

HDPE GRANULES

MOULD

MOTOR

HEAT

HEAT

AIR BLOWN INTO MOULD FORCING PLASTIC AGAINST THE SIDES

HDPE GRANULES

HEAT

HEAT MOTOR

COMPRESSED AIR

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BIN REMOVED FROM MOULD

HDPE GRANULES

HEAT

HEAT

MOULD

HDPE BINMOTOR

HDPE GRANULES

HEAT

HEAT

COMPRESSED AIR IN

MOTOR

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LOCATION UNIT

We are going to start the unit at Cherlapally Phase III , besides Indian Oil Corporation, we

have taken newly construction building for lease.

PROPOSED NAME OF UNIT & BRAND NAME

We would like the name the production unit as

blue PACKAGINGjay

bluejay

BRAND NAME

P A C K A G I N G

FINANCIAL ANALYSIS

P A C K A G I N G

FINANCIAL ASPECTS

A. Fixed Capital

1. Building (2,300 sft work are a is leased with deposit) : 2,00,000

2. Machinery & Implements

DESCRIPTIONSl.No.

Blow moulding Machine 3 Ltr.1.

Nos RATE ( ` ) AMOUNT IN ( ) `

1 6,44,500.00 6,44,500.00

Blow moulding Machine 500 ml2. 1 5,17,000.00 5,17,000.00

Scrap Grinder3. 1 1,19,600.00 1,19,600.00

Air Compressor4. 1 1,45,128.00 1,45,128.00

Cooler Tower5. 1 51,660.00 51,660.00

Chiller6. 1 2,37,145.00 2,37,145.00

Platform Type Weighing Machine7. 1 15,000.00 15,000.00

Leak Detectors8. 1 1,97,000.00 1,97,000.00

Sub Total 24,31,473.00

Set Moulds9. 15 21,000.00 3,15,000.00

Packing & Forwarding charges @ 5 % 1,2,3,4,5,6,8,10,11 1,05,823.65

Commissioning @ erection charges @ 5% except item no. 1,2,3,4,5,6,8,10,11 1,05,823.65

Sub Total 26,43,120.03

Total Fixed Capital Investment

Sub Total: 26,43,120.00

Furniture & Office Equipment 50,000.00

Total 26,93,120.03 Say `.27,00,000.00

Hopper Loader 10. 1 41,600.00 41,600.00

Vertical Colour Mixer11. 1 47,840.00 47,840.00

Other Machineries 12. 1,00,000.00 1,00,000.00

3. Furniture & Office Equipment 50,000.00 `

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A. Working Capital per month

1. Raw materials & Consumables

MATERIALNo.

HDPE (HIGH DENSITY POLYETHYLENE) Granules1.

QUANTITY UNIT RATE AMOUNT ( ` )

7 Tones 80,000 per Tone 5,60,000.00

Basis & Presumptionsv The production is considered on single shift basis and the working days in a month are 25 and that of

per annum is 300.

v The Installed Capacity of the unit is 480 kg per shift. HDPE Granules is processed to manufacture Jerry

Cans of different shapes and sizes. The time period for achieving fully / envisaged capacity utilization is

three years.

v Though the unit is run with Blow moulding technology, many types of plastic articles and households

items can be manufactured. Initially, Jerry Cans of 250 ml, 500 ml, 1 , 2 Liter capacity would be

manufactured in the proposed unit.

v The weight 250 ml capacity Jerry Can is 40 grams, 500 ml capacity Jerry can is 50 grams, 1 liter capacity

Jerry can is 92 grams, 2 Liter capacity Jerry can is 100 grams.

v Wastage in the Raw Materials and process losses has been considered at a rate 2 %.

v The salaries and wages for staff and labour have been taken into consideration as per the Minimum

Wages Act.

v The cost of plant and machinery, Raw materials, selling price of finished products etc. are the prices

collected at the time preparation of project report and may vary depending upon location,

manufactures, market and other various reasons.

ParticularsSl.No.

Machine operator (Skilled)1.

Nos. Salary ( ` ) AMOUNT ( ` )

1 15,000.00 15,000.00

2. Salary & Wages

Semi Skilled Worker2. 1 8,000.00 8,000.00

Helpers3. 3 5,000.00 15,000.00

Watchman4. 1 5,000.00 5,000.00

Total 6 43,000.00

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DescriptionSl.No.

Electricity1.

Units Rate / Unit AMOUNT ( ` )

13,440 4.13 55,507.20

2.Utilities

MachineSl.No.

Blow Moulding Machine 2 Ltr1.

Power Load

30 HP

Annexure

Blow Moulding Machine 500 ml2. 22 HP

Scrap Grinder3. 5 HP

Air Compressor4. 1 HP

Chiller5. 2 HP

As the machines run intermittent, the connect load of all the machinery and the other lighting, fans etc is 10 HP

Marketing Expenses

ParticularsSl.No.

Own employees 1.

Nos. Salary ( ` ) AMOUNT ( ` )

2 10,000.00 20,000.00

Commission Agent 5% on there billing 2.

Advertising & Publication 3. 15,000.00 15,000.00

Total 6 35,000.00

2

4. Other Expenses

Description Sl.No.

Rent for Building (2300 sft)1.

AMOUNT ( ` )

27,600.00

Repair & Maintenance2. 5,000.00

Stores Consumables3. 4,000.00

Telephone4. 2,500.00

Miscellaneous expenses5. 4,000.00

45,600.00Total

Insurance6. 2,500.00

P A C K A G I N G

Total Capital Investment

Description Sl.No.

Total Fixed Capital1.

AMOUNT ( ` )

27,00,000.00

Total Operational cost2. 7,04,107.00

34,04,107.00Total

Means of Finance

My Contribution (@ 25% on Capital Investment)1. 8,51,026.00

Loan From Bank2. 25,53,081.00

34,04,107.00Total

Packaging & Transportation

Description Sl.No.

Packaging 1.

AMOUNT ( ` )

Transportation 2.

Total

Total Working Capital

Description Sl.No.

Raw Material & Consumables1.

AMOUNT ( ` )

5,60,000.00

Salary & Wages 2. 43,000.00

Utility Charges3. 55,507.00

Other Expenses4. 45,600.00

7,04,107.00Total

Cost of production ( per annum)

Description Sl.No.

Total working capital1.

AMOUNT ( ` )

84,49,284.00

Depreciation @ 10% on Machinery & Equipment2. 2,43,147.30

Depreciation @ 15% on Furniture & office equipment3. 7,500.00

Interest on Total Investment @15%4. 5,10,616.00

92,10,547.00Total

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Sales Realisation ( per Annum)

Description Sl.No.

2400 bottle of 100 ml @ 20 gm wt. @ Rs. 2.50 1.

AMOUNT ( ` )

6,000 x 12

2400 bottle of 250 ml @ 40 gm wt. @ Rs. 4.80 2. 11,520 x 12

2400 bottle of 500 ml @ 40 gm wt. @ Rs. 6.00 3. 14,400 x 12

72,000 bottle of 100 ml @ 40 gm wt. @ Rs. 11.00 4. 7,92,000 x 12

Total

2,47,176.00

96,39,864.00

AMOUNT ( ` )

72,000.00

1,38,240.00

1,72,800.00

95,04,000.00

98,87,040.00

Less Marketing Expenses @ 2.5 %

Net Turnover

PROFITABILITY ESTIMATES

A. Sales revenue per Annum : Rs. 96,39,864.00

B. Cost of production per Annum : Rs. 92,10,547.00

C. Net Profit before Tax (A-B) : Rs. 4,29,317.00

PROFIT RATIO

Net Profit Ratio =Net Profit per year

Annual Sales Revenuex 100

4,29,317

96,39,864x 100=

= 4.5%

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RATE OF RETURN ON INVESTMENT

Rate of Return on investment =Net Profit per year

Total Capital Investmentx 100

4,29,317x 100=

= 12.6%

34,04,107.00

BREAK EVEN ANALYSIS

Description Sl.No.

Rent on Building1.

AMOUNT ( ` )

27,600.00

Depreciation @ 10% on Machinery & Equipment2. 2,43,147.30

Depreciation @ 15% on Furniture & office equipment3. 7,500.00

Interest on investment @ 15%4. 5,10,616.00

14,80,576.00Total

40% Salary & Wages 5. 2,06,400.00

40% Utility Charges6. 2,66,433.00

40% Other Expenses except rent7. 2,18,880.00

Fixed Cost

B.E.P.Fixed Cost

Fixed Cost + Profitx 100=

B.E.P.14,80,576

14,80,576 + 4,29,317x 100=

77.5%=

P A C K A G I N G

Machinery Suppliers

1) M/s AARNA MACHINES PVT. LTD

A-4, Gundecha Building, 3 X H.K. Road, Kandivali (W),

Mumbai - 400067, Maharashtra, India

Phone:91-22-28051466

2) M/s ELGI EQUIPMENT LIMITED

Singanallur, Coimbatore - 641 005, India.

Tel: 422- 2589555

3) M/s GEM Equipments Limited,

S.F. No.103, Avanashi Road, Arasur,

Coimbatore, TN 641 407, INDIA

Phone: 422- 2360013

4) M/s SARO ENTERPRISES

OFFICE & FACTORY: 28,

First Reddy Street, Ekkattuthangal,

Chennai – 600 032

M: 9884068651

5) M/s Progressive Engineers

Mumbai, INDIA.

T: +91-22-25796760 /

32944289 /32953422

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Other Blow Moulded Containers

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