PROJECT REPORT

ON

MANUFACTURE OF PLASTIC CRATES

Registered Office: Location:

PLASTIC CRATES

INDEX:

1. Project at a glance

2. Company Profile

3. Product Introduction

4. Scope of the Project

5. Constitution / Sector

6. Background of the Promoter

7. Background of Proposal Flow Chart

8. Process

9. Process Flowchart

10. Raw materials

11. Marketing

12. Location Advantages

13. Incentives

14. Subsidies

15. Licenses

16. Project Cost & Means of Finance

17. Notes on Project Cost

18. Notes on Means of Finance

19. Utilities

20. SWOT Analysis

21. Assumptions

22. Financial Statements

Project at a Glance

1. Name of the Unit .,

2. Office

3. Location

4. Line of Activity Manufacture of Plastic Crates

5. Sector Small

6. Constitution

7. Name of the Promoters

8. Project Cost & Means of

Finance

PROJECT COST AMOUNT MEANS OF FINANCE

AMOUNTRs in Lakhs

Land Own Capital 52.00

Buildings 60.00

Machinery 95.00 Term loan 113.00

Electricals & Erection

5.00

Working Capital 20.00 Working Capital loan 15.00

Total 180.00 Total 180.00

9. Promoters Contribution 28.88%

10. Power 125 HP

11. Employment 14

Introduction

Plastic crates are often used for shipment of bottles of water, beer, milk, etc. Many are designed to stack securely and to be returned as reusable packaging. See Milk crate, Bottle crate. Plastic moving boxes are constructed using High Density Polyethylene HDPE which is made from oil based petroleum products (14.52 pounds of oil makes 8.4 pounds of plastic moving box).

Plastic moving crates or boxes are also becoming popular to move offices and homes.

Milk crate

Furniture made from milk crates

Expedient stepping stones

Milk crates are square or rectangular interlocking boxes that are used to transport milk and other products from dairies to retail establishments.

In English-speaking parts of Europe the term "bottle crate" is more common but in the United States the term "milk crate" is applied even when the transported beverage is not milk.

History

The dimensions of the milk crate may have been influenced by the dimensions of the Tea chest. For all practical purposes, both hold similar internal volumes, but tea chests are designed for shipping over the open ocean.

The bottle crate emerged after the tea chest was a defacto shipping method.

Design

Middle 20th century bottle crates were made of wood, later ones were stainless steel, and those made in the latter part of the century were of heavy-duty polyethylene.

The most common milk crate sizes are designed to carry several 1 US gallon (3.8 l; 0.83 imp gal) milk jugs:

Number of jugs carried Internal dimensions

4 12 by 12 inches (300 by 300 mm)

618.25 by 12 inches (464 by 305 mm)

Uses & recycling

Milk crates are often stolen for either personal or business use or for the plastic that they are made out of. Theft of milk crates can cost dairies millions of US dollars per year.

This has led at least one dairy farm to hire a private investigator to discover what is happening to the crates; the results of investigations point to plastic re-sellers being the culprits in the majority of thefts.

Alternate shipping methods

In July 2008, Wal-Mart and some other stores introduced a square milk jug that does not need to be transported in a crate. Sometimes called "green" milk jugs, they are not green in color, but rather are claimed to be environmentally friendly.

These new milk jugs are stackable, and can be transported without crates. Companies need not buy plastic for the crates, nor transport or wash them.

Bottle crate

Reusable mineral water bottles in crates

A bottle crate or beverage crate is a container used for transport of beverage containers. In the present day they are usually made of plastic, but before the widespread use of plastic they tended to be made of wood or metal.

Beverage crates began to be made of HDPE in the 1950s.

Such crates can be long-lived. In the 1980s in Sweden, a take-back campaign was organized, when 25-bottle crates were replaced by the more ergonomic 20-bottle crates. Some of the crates returned for recycling had been in use since the 1960s.

Because manufacturers avoid lead-based and cadmium-based pigmentations, in response to legislation and public opinion, they have had to resort to other methods of colouring HDPE crates. In Japan, since the early 1970s, HDPE bottle crates have been pigmented with a variety of perylene, quinacridone, azo condensation, and Isoindoline pigments. Japanese manufacturers have modified these in order to control nucleating behaviour, and have improved weathering performance and impact-resistance properties by making the light-stabilisization systems more efficient.

Types of Crates

Industrial Crates:

400 X 300 Series Crates

We are manufacturer and exporter of industrial crates for Automobile, Electronics, Hardware, Engineering, Brass,

Glass and Electrical industry. These crates are available in fixed length and breadth ratio with different height

options ranging from 65 mm to 275 mm having capacity of 4 ltrs. to 26 ltrs. .

Capacity : 8.5 Ltr.

Size : OD - 400x300x90 mm

Capacity : 11 Ltr.

Size : OD - 400 X 300 X 120 mm

Capacity : 14 Ltr.

Size : OD - 400x300x150 mm

Capacity : 17 Ltr.

Size : OD - 400x300x175 mm

Capacity : 20 Ltr.

Size : OD - 400x300x220 mm

500 x 325 Series Crate

This series include crates for Bakery Industry and Fruit Vegetable Industry. It is available with height options from

100 mm to 250 mm, models are also available with front window as SFPO models for big spare parts handling.

Capacity : 19 Ltr.

Size : OD - 500X325X150 mm

Capacity : 32 Ltr.

Size : OD - 500x325x250 mm

Jumbo And Mini Jumbo Crates

Manufacturer and exporter of Jumbo Crates such as Fresh Product Crates, Textile Crates, Crates for Garments,

Crates For Fisheries, Heavy Duty Crates, Double Wall Jumbo Crates and Automobile Industries Crates. These

Crates are especially designed for voluminous material handling. Crates are engineered to handle the heavy

material.

Capacity : 76 Ltr.

Size : OD - 650x450x315 mm

Capacity : 76 Ltr.

Size : OD - 650X450X315 mm

Capacity : 76 Ltr.

Size : OD - 650X450X315 mm

Capacity :60 Ltr.

Size : OD - 650X450X210 mm

Fabrication / Customized Crate

We offer a comprehensive range of Fabrication / Customized Crate, which is highly acknowledged for its

compact and user friendly designs. These crates keep the products in proper condition while storage and

transportation. It will also use as a heavy duty crates,

Capacity : 25 Ltr.

Size : OD - 500X325X150 mm

Capacity : 20 Ltr.

Size : OD - 400X300X220 mm

Capacity : 35 Ltr.

Size : OD - 600X400X175 mm

Capacity : 35 Ltr.

Size : OD - 600X400X175 mm

Dairy Crates

We are manufacturer and exporter of milk crates, plastic milk crates, milk product crates and crates for oil

pouches. Our clients can avail from us a wide range of Dairy Crates that is known for its tough and resilient finish.

These are made of high quality plastic and ensure durability. These crates have high capacity and can also keep

the products in proper condition.

Capacity : 10 (10 pouches of 1 Ltr. each)

Size : OD - 471x378x149 mm

Capacity : 12 Ltrs ( 12 Pouches of 1 Ltr. each)

Size : OD - 471x378x159 mm

Capacity : 12 Ltr. (12 pouches of 1 Ltr. each)

Size : OD - 471X378X168 mm

Capacity : 12 Ltr. (12 pouches of 1 Ltr. each)

Size : OD - 471X378X170 mm

Bakery Crates

We are involved in offering an exclusive range of Bakery Crates. These crates are made of high grade raw

material and meet the relevant quality standards. These crates keep the bakery products in proper condition.

Capacity : 35 Ltrs.

Size : OD - 570X485X140 mm

Capacity : 35 Ltrs.

Size : OD - 570X485X140 mm

Fruit & Vegetable Crates

These crates with over 10 different models are designed for handling of fruits and vegetables. Considering the

perishable nature of fruits and vegetables, crates have very good ventilation and smooth interiors with sturdy

exteriors to handle load. Millions of Galaxy fruits and vegetable crates are being used in storage and

transportation of Tomato, Apple, Orange, Grapes, Mango etc..

Capacity : 48 Ltr.

Size : OD - 542X360X280 mm

Capacity : 48 Ltr.

Size : OD - 542x360x290 mm

Capacity : 48 Ltr.

Size : OD - 542x360x290 mm

Capacity : 48 Ltr.

Size : OD - 542X360X300 mm

Capacity : 30 Ltr.

Size : OD - 595x395x150 mm

Capacity : 48 Ltr.

Size : OD - 595x395x256

Capacity : 65 Ltr.

Size : OD - 540X390X350 mm

Advantages:

Crates are material handling containers which can be used for storage, transport or distribution and handling of products. Traditionally crates in India were manufactured from wood but with developments in plastics processing and conservation of environment issues gaining importance in developed societies, most of the material handling crates are being manufactured to size to suit the end use, but are predominantly made from High Density Polyethylene (HDPE) and sometimes from Polypropylene (PP). These injection moulded crates have a long life and are easy to handle due to its light weight, and have many other advantages over the traditional wooden crates.The advantages of using plastic crates are:

Considerable reduction in weight and hence easy handling and transportation

Freedom from sharp corners and splinters facilitating safe handling

Complete freedom from corrosion unlike in the case of metal crates

No noise while handling unlike metal crates

Requires negligible maintenance compared to wooden and metal crates.

Have fairly long life and are suitable for multiple trips.

Good resistance to chemicals and harsh environment. Can be made in

variety of colors and hence have better sales appeal.

Scope of the Project

The envisaged project is to Manufacturing of Plastic Crates at , Dist.. The administrative office at. The Project cost is estimated of Rs180.00 Lacs. The installed capacity is 648 MT per annum with 8 working hours in 2 shifts in a day and 300 working days in a year. This would mean that 2.88 lakh pieces of crates having an average weight of 2.25 kg per crate could be manufactured at 100% capacity utilisation. The operating capacity is assumed 60%, 70% and 80% in first, second and conceding year operations, The unit is eligible all incentives as per latest GO

Constitution & Sector

Constitution

, unit is constituted as a company act for Manufacturing of Plastic

Crates

Sector :

The proposed sector comes under Small Sector. The company has

already obtained registration Certificate from District Industries Centre,

Visakhapatnam.

Background of the Promoter

Mr. S/o aged years, residing at, Visakhapatnam.  He passed. He is

having over 15 years’ experience in. He is an income tax assesse.

With his experience and influence he plays a key role in making this

successful project.

Location & its Advantages

LAND: The proposed location of the Unit is situated at Visakhapatnam

Dist. The location of the industry has considerable influence on the

techno-economical facility of the project. There are various factors con-

tributing to the functioning of an industry and following are the primary

factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:

1. Availability of labor at economically rate.

2. Adequate supply of electricity power.

3. Adequate supply of water throughout the year.

4. The site is well connected with road facility.

5. Banking facilities and Government supports.

6. Adequate Transport facilities for economical transportation of

finished product and Spare parts.

7. Nearness to the Market.

8. As the area is developing area, the setting up of a unit in this will help the people to progress both socially and economically. There are several Engineering Colleges around the proposed unit.

Incentives / Subsidies

The following incentives are available for Micro and Small

Enterprises (MSE’s):

1. 100% reimbursement of Stamp duty and transfer duty paid by the

industry on purchase of land meant for industrial use.

2. 100% reimbursement of Stamp duty for Lease of

Land/Shed/Buildings and also mortgages and hypothecations.

3. 25% rebate in land cost limited to Rs. 10.00 Lakhs in Industrial

Estates/ Industrial Parks.

4. 25% Land conversion charges for industrial use limited to Rs. 10.00

lakhs.

5. Fixed power cost reimbursement @ Rs.0.75 per unit (upper ceiling)

on the proposed revised rate (2010 -11) for 5 years from the date of

commencement of commercial production. Incase decrease in

Power Tariff; the reimbursement will be reduced proportionately.

6. 15% investment subsidy on fixed capital investment subject to a

maximum of Rs. 20.00 Lakhs.

7. Reimbursement of 100% VAT/CST or State Goods and Services Tax

(SGST) for a period of 5 years from the date of commencement of

commercial production to Micro Enterprises.

8. Reimbursement of 50% VAT/CST or State Goods and Services Tax

(SGST) for a period of 5 years from the date of commencement of

commercial production to Small Enterprises.

9. Interest subsidy under PavalaVaddi Scheme on the term loan taken

on the fixed capital investment by New Micro and Small enterprises

in excess of 3% per annum subject to a maximum reimbursement of

9% per annum for a period 5 years from the date of commencement

of commercial production.

10. Seed capital assistance to First Generation entrepreneurs to

set-up Micro Enterprises @ 10% of the Machinery cost , which will be

deducted from the eligible investment subsidy

11. 50% reimbursement of cost involved in skill up gradation and

training the local man power limited to Rs.2000 per person.

12. 50% subsidy on the expenses incurred for quality

certification / patent registration limited to Rs. 2.00 Lakhs for MSE’s

13. 25% subsidy on specific cleaner production measures limited

to Rs. 5.00 lakhs.

14. To extend investment subsidy to the identified service

activities related to industries setup in all Municipal Corporation

limits in the state as per the list appended as Annexure-II

Licenses

The following licenses will be required for the Starting up the Industry:

1. Part I

2. Single Window approvals

3. Panchayati

4. Inspector of Factories

5. Pollution

6. Electricity

7. VAT

8. Town & City Planning

Market Potential

Plastic containers are considered as necessity items for every household. As per 2014 census the population of Southern region is 53.90 crores. Considering that five persons constitute a household the total household in the region is 78,00,000. Again considering that every year there is a replacement demand to change these items by at least 30% of total number of households, the requirement of these items on this basis becomes 23,40,000 numbers. This may be in addition to the new demand for these items by at least 15% of total number of household every year which stands at 11,70,000. Therefore, every year at least 35,10,000 numbers of these items are required by the households in the North Eastern Region.

To meet the above demand there exist around 10 numbers of related units in the region. The production of these units is limited and bulk of the requirement is being met from outside sources, the leading brands being “Brite” and “Prince”. Therefore there is a scope for additional around 10 numbers of such units with capacity to produce 1.5 lakh number of plastic containers

In India, at present there are several manufacturers of large injection moulded crates. This segment of business is dominated mainly by organized sector players. The major players in injection moulded crates are:

Nilkamal Crates and Bins

Bright Brothers

Supreme Industries Limited

Prince Plastics

Synthetic Moulders

Gold Plast

The following is the sectors and the use of crates in these sectors.

Soft drink industry Storage, handling, transport and distribution.Milk and dairy products Handling, transport, distribution.

Fisheries, and Marine Storage, handling, transport and meat products distribution.Automobile industry Storage

Fruits and vegetable Storage, handling, transport.Electronic and electricals Storage, handling.Pharmaceuticals Storage, handling.Agro-products Storage, handlingYarn and textiles industry Storage, handlingDefense Sector Storage, handling of bombs

Following types of crates are generally available in Market and are popular amongst end-users.

Fully closed crates - with all surfaces of crates in solid except top.

Grilled crates - with all sidewalls grilled and bottom close.

Totally grilled crates - with all sides and bottom also grilled.

Crates with lids - a lid on top to protect the contents.

Folding crates - entire crate can be folded to a flat assembly to save space when not in use.

Bins - modified shape of crate so that contents can be removed from front without unloading the bins stacked over it.

Stacking and nesting crates - height of crate can be reduced when stored in nesting positions.

Soft drink crates - these are available with partitions to separate bottles rattling with each other.

Milk pouch crate.

Tetra pack crates.

Crates for handling Printed Circuit Boards.

The traditional segments of crates experience stiff competition and hence, the crates manufacturers are always in look out for newer and newer application. The demand for crates is increasing from a diverse range of businesses. The usage of crates especially in agri business is full of promise as it has demonstrated its superiority in handling, storing and transporting of agricultural produce by reducing the damage level of food products by almost 30%. The entry of crates in agriculture is likely to revolutionize the crates business and this segment is expected to drive the future growth of this business.

Manufacturing Process

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

The manufacturing process of injection moulded crate is simple in concept. The Poly Propylene granules are fed via a regulated hopper

into a homogenous molten mass by application of heat and shearing action of continuously rotating extruded screw, which also keeps pushing the plastic melt forward. The melt gets collected at the forward end of the extruder cylinder and is pushed into the mould cavity by the screw, now acting as a hydraulic piston. The mould is kept at pre-specified temperature and once injected, the plastic melt is held under high pressure to ensure that the material reaches all the ends of the mould. In crates moulding, the moulds used have comparatively very large depth.

The mould is opened after plastic melt has solidified sufficiently and the moulded item is ejected by means of ejector pins or plates. During the cooling cycle in the mould, the extruder screw prepares another batch of plastic melt, ready to be injected, and thus the cycle goes on continuously. The moulded articles usually do not require any finishing operation other than removal of wastage. Otherwise, after visual inspection, they are kept for curing for about 40 to 50 hours and then despatched.

Plant and Machinery Suppliers

The following is the list of plant and machinery suppliers

Sl NoName Communication Address1 M/S Bonhomie Plastics Pvt. Ltd. 14/a, Ujagar Indl. Estate, Next

To Dukes, Deonar,Mumbai-2 Naroto N.A.Group of Companies Plot No.3725, Phase IV,

GIDC,Vatva I.E., Ahmedabad - 382445 IndiaTel. No.:079 25840374 /

Raw Material & Utilities Requirement

The major raw material required for the project would be polypropylene / HDPE of injection moulding grade. In addition, some stabilisers and additives would also be needed. The raw material required would be around 689 MT at 100% capacity utilisation. 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 the fourth year onwards of its operation.

The utilities required are power and water. Around 75 KW of Power and 600 KLPA of water are required.

Process Flowchart

Project & Means of Finance

PROJECT COST AMOUNT MEANS OF FINANCE AMOUNTRs in Lakhs

Land Own Capital 52.00Buildings 60.00Machinery 95.00 Term loan 113.00Electricals & Erection 5.00Working Capital 20.00 Working Capital loan 15.00Total 180.00 Total 180.00

Promoter Contribution : 28.88%

Notes on Project Cost

RAW GRANULES PLASTIC IS FED INTO THE MODLING MACHINE

HEATED TO LIQUID FORM, COLOURED

INJECTED IN TO THE LARGE MOULD TO CREATE THE MAIN BODY OF THE CRATE

LIDS ARE ALSO MADE IN THE SAME WAY BUT ON A SMALLER MACHINE

IF REQUIRED BOTH PARTS ARE HOT FOIL PRINTED WITH LOGO AND DETAILS

Land & Buildings Req uirement:

The total land area is 1000 sq metres and the built up area is 750 sq mt.

Plant & Machinery:-

The machinery and equipment worth of Rs.95.00 lacs are required to run

the unit. The promoter has already approached reputed suppliers,

obtained quotations and enclosed the same for your reference.

Working Capital:-

An amount of Rs.20.00 Lacs provided towards working capital facility to

run the unit in smooth levels. The detailed working requirement placed as

annexure.

Notes on Means of Finance

1. CAPITAL:

The promoter’s capital was fixed at Rs.52.00 Lacs.

2. TERM LOAN:

The unit desires to avail Term Loan of Rs.113.00 Lacs. from

Bank/Financial Institute to meet part cost of the project cost, which works

out to 62.77% of the total project cost of Rs.180.00 Lacs. The amount

would be repayable in 28 quarterly installments of Rs.4.03 lacs each with

a moratorium of twelve months from the date of commencement of

Commercial Production.  However, the interest on the term loan would be

payable as and when it is applied on the account. The detail of the

repayment programmed is placed in this report.

Utilities & Services

POWER:

The Unit requires 125 HP power supply under L.T.  Limit. No

problems are anticipated with regard to obtaining of power supply.

WATER:

The unit requires 1,000 Liters of water per day.

EFFLUENTS:

There are no harmful effluents generated in the process.

TRANSPORTATION:

The proposed unit is located at , Visakhapatnam Dist. There is no

problem for transportation of raw material and finished goods.

MANPOWER REQUIREMENTS:

The unit will be employing 14 Nos. of workers besides 4 Nos. of

administrative staff. All the above persons can be recruited locally

without any difficulties.

SWOT Analysis

STRENGTH:

The unit is located at, Dist.

The company is having some sort of experience in the same line of

activity

WEAKNESS:

The unit has competition from the existing units as the proposed unit

is having latest technology and by the government encouragements to

start new industry the units can competent with the old industries.

Assumptions Underlying for Preparation of Financial Statements

(In No’s)

Industrial

Jumbo/ Milk

Fruits & Veg

Total

20 20 20 60

Installed Capacity Per Hour :

No.of Working hours : 8hrs /Shift

No. of Shifts Per Day : 2

Installed Capacity Per Day:

No of Working days 300 days

Installed Capacity @ 100 % Capacity :

Operating Capacity is assumed as under :-

Description 2015-16 2016-17 2017-18Industrial 57600 67200 76800Jumbo 57600 67200 76800Fruits & Veg 57600 67200 76800Total 172800 201600 230400Utilization (%) 60 70 80

Raw materials Requirement

The average price of the raw materials with 20% wastage the average

price is 78,000.00

Sl. No

Description Qty in MTS Unit Cost Amount

1 Plastic Granules 466.56 78,000.00 363,91,680.00

Stores & Spares :- Stores and Spares are estimated at 5% of Raw materials of Rs. 18, 19,550.00

Power & Fuel :- The unit requires 125 HP load of power and the unit run

for 10 hrs in 2 shifts in a day and 300 days in a year.

Industrial Jumbo /Milk Fruits & Veg

Total (in No’s)

320 320 320 960

Industrial Jumbo/ Milk Fruits & Veg Total (in No’s)

96000 96000 96000 2,88,000.00

125x8x2x300x.746x.80x.60x6.50= 13,

96,512.00

Wages :- Wages are calculated as under

S. No

Description No.of employees

Salary/month

Total/month

Salary/year

1 Works Manager 1 15,000.00 12 1,80,000.00

2 Accountant-cum-Store Keeper

1 10,000.00 12 1,20,000.00

3 Administrative Assistant

1 8,000.00 12 72,000.00

4 Clerk 1 8,000.00 12 72,000.005 Skilled Workers 5 6,000.00 12 3,60,000.0

06 Semi Skilled

Workers2 5,000.00 12 1,20,000.0

07 Unskilled

Workers2 4,000.00 12 96,000.00

8 Peon/Watchman

1 3,000.00 12 36,000.00

10,56,000.00

Other Manufacturing Expenses: - Other Manufacturing Expenses are estimated of 5% on sales Rs. 23, 32,800.00

Administrative Expenses: - Administrative Expenses are estimated Rs 12,40,000.00 per year.

Selling Expenses: - Selling expenses are estimated at 2% on Sales 9,33,120.0

Packing Expenses: Packing expenses are estimated at 1% on sales 4, 66,560.00

SALES:

Sl. No

Description Qty In No’s Unit Cost In Rs.

Amount in Lacs

1 Industrial Crates 57600 255.00 146,88,000.00

Jumbo Crates 57600 285.00 164,16,000.00

Fruits & Veg Crates 57600 270.00 155,52,000.00

Total 172800 466,56,000.00

Depreciation :- Depreciation was been calculated on written down value method

Plant & machinery 15% Buildings 10%

Interest :- Interest has been calculated as per effective rate

Term Loan 12.50%

Working Capital 12.75%